Abu Dhabi, UAEThursday 27 June 2019

Saudi Aramco in August will hold its first earnings call

It is part of efforts to increase financial transparency in the world's most profitable company

The Khurais oil field, 160 km from Riyadh. Saudi Aramco earned $111.1 billion in net income last year. EPA
The Khurais oil field, 160 km from Riyadh. Saudi Aramco earned $111.1 billion in net income last year. EPA

Saudi Aramco, the world's top oil exporting company, will hold its first earnings call in August, after financials for the last fiscal year established it as the world’s most profitable company.

The state producer on Thursday shared its annual results in a new investor relations section on the company website, ahead of its half yearly presentation scheduled for August.

An independent audit of the company’s reserves revealed Aramco to be the world’s most profitable company, with $111.1 billion in net income, surpassing tech giants Apple and Google.

Greater financial transparency by Aramco comes as the government intends to list the company, which Saudi Arabia values at $2 trillion. Plans to take the company public were delayed as the state oil producer merged with Saudi petrochemicals giant Sabic. Aramco agreed to acquire 70 per cent shares of Sabic, the region’s largest chemicals producer as well as the kingdom's biggest listed energy company. To finance the acquisition, Aramco issued a $12bn bond, with the prospectus detailing its finances.

In March, Energy Minister Khalid Al Falih told the Saudi daily Okaz, Aramco's public listing would happen within the next two years.

Orders for Aramco's debut international bonds topped $100bn in April. Demand for the issue was the largest in emerging markets since an orderbook value of more than $52bn for Qatar's $12bn bonds last year, and surpasses $67bn demand for Saudi Arabia's inaugural bonds in 2016.

The Aramco bond attracted interest from a wide range of investors, as the oil producer's vast profits would put its debt rating – if unconstrained by its sovereign links – in the same league as independent oil majors such as Exxon Mobil and Shell.

Aramco's earnings before interest, tax, depreciation amortisation stood at $224bn last year.

The state producer also received the fifth-highest ratings from Fitch Ratings and Moody's Investors Service. Moody's assigned the Saudi company an A1 credit rating while Fitch rated it A-plus.

Updated: June 13, 2019 02:32 PM