Saudi Aramco, officially known as the Saudi Arabian Oil Company, is one of the largest oil companies in the world. Headquartered in Dhahran, Saudi Arabia, the company is responsible for the exploration, production, and distribution of oil and natural gas in the region. In this blog, we will take a closer look at the finances of Saudi Aramco.
Revenue and Profits In 2021, Saudi Aramco reported a net income of $49 billion, making it one of the most profitable companies in the world. The company’s revenue for the same year was $230 billion, which is a significant increase from the previous year’s revenue of $206 billion. The increase in revenue can be attributed to the recovery in oil prices and the company’s ongoing efforts to diversify its operations.
Debt and Capital Expenditure Despite its impressive profits, Saudi Aramco has a significant amount of debt. In 2021, the company’s total debt was $66 billion, which is a substantial increase from the previous year’s debt of $40 billion. However, the company has maintained a strong credit rating, which allows it to borrow at a lower cost than many of its peers.
Saudi Aramco has also been investing heavily in capital expenditure (CAPEX) to increase its production capacity and diversify its operations. In 2021, the company’s CAPEX was $35 billion, which is a significant increase from the previous year’s CAPEX of $27 billion. The company has been investing in downstream operations, such as refining and petrochemicals, to reduce its reliance on oil exports.
Dividend Payments As a publicly traded company, Saudi Aramco pays dividends to its shareholders. In 2021, the company paid a total dividend of $75 billion, which is a significant increase from the previous year’s dividend of $37 billion. The increase in dividend payments can be attributed to the recovery in oil prices and the company’s commitment to returning value to its shareholders.
Conclusion Saudi Aramco is one of the most profitable and valuable companies in the world, with a significant presence in the oil and gas industry. While the company has a significant amount of debt, it maintains a strong credit rating and is investing heavily in diversifying its operations. The company’s commitment to returning value to its shareholders through dividend payments makes it an attractive investment option for many investors.