Saudi Aramco, officially known as the Saudi Arabian Oil Company, is a global energy giant headquartered in Dhahran, Saudi Arabia. Here are some key points about this influential company:
World’s Largest Oil Producer:
- Saudi Aramco holds the title of being the world’s largest oil producer.
- It manages massive oil reserves and operates the world’s most extensive hydrocarbon network, known as the Master Gas System.
History and Origins:
- The company’s roots trace back to 1933, following a concession agreement between the Saudi Arabian government and the Standard Oil Company of California.
- In 1938, Saudi Aramco began its primary drilling operations and achieved its first commercial oil production.
- Over the next decade, it rapidly expanded across Saudi Arabia, reaching a significant milestone of 500,000 barrels per day of crude oil production by 1949.
Ownership and IPO:
- Saudi Aramco is primarily state-owned but made headlines with its IPO (initial public offering).
- In 2019, it raised an impressive $29.4 billion through its IPO and a greenshoe option in 2020.
- The IPO was a historic event, attracting global attention and making it the largest IPO ever.
Financial Dominance:
- Saudi Aramco’s financial prowess surpasses even tech giants like Apple and Alphabet’s Google.
- Although the company reported lower net income due to the global COVID-19 pandemic, it remains ahead of its peers.
Leadership:
- Amin H. Nasser serves as the company’s President and CEO.
- The board of directors, led by Chairman Yasir Othman Al-Rumayyan, oversees its strategic decisions.
Annual Reports and Financial Statements:
- Saudi Aramco provides detailed financial information through its annual reports and quarterly earnings reports.
- You can explore their official Investor Relations page for the latest updates:
Key Financial Metrics (FY 2022):
- Net Income: A staggering 604.0 billion SAR (approximately $161.1 billion).
- Free Cash Flow: An impressive 557.0 billion SAR (approximately $148.5 billion).
- Dividends Paid: A substantial 281.3 billion SAR (approximately $75.0 billion).
Dividend Policy:
- The Board of Directors consistently aims to deliver a sustainable and progressive dividend.
- For the fourth quarter of 2022, they declared a cash dividend of 73.2 billion SAR (approximately $19.5 billion), reflecting a 4.0% increase compared to the previous quarter.