Saudi Aramco’s first-half net income falls 12% to $47 billion

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia. Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier. By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year. In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the


An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia. Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier. By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year. In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the
Saudi Aramco’s first-half net income falls 12% to $47 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, saudi, income, company, 47, worlds, billion, 12, nasser, net, aramcos, firsthalf, aramco, crude, falls, oil


Saudi Aramco's first-half net income falls 12% to $47 billion

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia.

Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier.

By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year.

Aramco said total revenues including other income related to sales were at $163.88 billion in the first half of this year, down from $167.68 billion a year earlier, on lower oil prices and reduced production.

In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the average realized price of crude oil compared to the same period in 2018, from $69 to $66 per barrel.

Aramco President and CEO Amin Nasser said the company had continued to deliver on its “downstream growth strategy” through acquisitions both domestically and in international markets.

“These acquisitions are expected to enhance dedicated crude placement, increase refining and chemicals capacity, capture value from integration and diversify our operations,” Nasser said.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, saudi, income, company, 47, worlds, billion, 12, nasser, net, aramcos, firsthalf, aramco, crude, falls, oil


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Saudi Aramco says it’s ready to go public

Saudi Aramco’s CFO, in the company’s first-ever conference call, on Monday told investors that the company is ready to go public, but that the timing will be up to its owner, the Kingdom of Saudi Arabia. Saudi Crown Prince Mohammed bin Salman would like to see Aramco valued at $2 trillion, about $500 billion more than bankers are currently estimating, according to sources. “We, in Saudi Aramco, have delivered strong and unmatched financial results, despite lower oil prices and volatile market co


Saudi Aramco’s CFO, in the company’s first-ever conference call, on Monday told investors that the company is ready to go public, but that the timing will be up to its owner, the Kingdom of Saudi Arabia. Saudi Crown Prince Mohammed bin Salman would like to see Aramco valued at $2 trillion, about $500 billion more than bankers are currently estimating, according to sources. “We, in Saudi Aramco, have delivered strong and unmatched financial results, despite lower oil prices and volatile market co
Saudi Aramco says it’s ready to go public Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: patti domm
Keywords: news, cnbc, companies, saudi, companys, million, company, prices, reliance, told, billion, oil, public, ready, aramco


Saudi Aramco says it's ready to go public

An employee walks past crude oil storage tanks at the Juaymah Tank Farm in Saudi Aramco’s Ras Tanura oil refinery and oil terminal in Ras Tanura, Saudi Arabia, on Monday, Oct. 1, 2018.

Saudi Aramco’s CFO, in the company’s first-ever conference call, on Monday told investors that the company is ready to go public, but that the timing will be up to its owner, the Kingdom of Saudi Arabia.

“Basically, the company is ready for the IPO. Now the timing of the IPO itself, this is a shareholder’s issue, and they will announce it depending on their perception of what would be the optimum market condition,” said Khalid al-Dabbagh, chief financial officer, reiterating the company’s previous stance.

Sources have said that the Saudi government, encouraged by the success of Aramco’s $12 billion debt offering, would like to move its plans for the IPO forward, and issue stock in 2020. The offering is expected to be the largest new issue ever, and represent just a small portion of the company’s equity. Saudi Crown Prince Mohammed bin Salman would like to see Aramco valued at $2 trillion, about $500 billion more than bankers are currently estimating, according to sources.

The company faces tough markets, where oil prices are volatile and near the 2019 low. Brent crude futures were trading below $60 a barrel Monday, and are down 18% over the past year. At the same time, energy stocks have underperformed, with the S&P energy sector up just 1.7% year to date, the worst-performing sector and well behind the S&P 500’s 2019 gain of about 16%.

“We, in Saudi Aramco, have delivered strong and unmatched financial results, despite lower oil prices and volatile market conditions. This is really a testament to our resilience,” said al-Dabbagh, noting the talks are in the early stages.

Saudi Aramco earlier reported first half net profits of $46.9 billion, down from $53 billion last year due to the impact of lower oil prices. Free cash flow rose 6.7% to $38 billion, and it is that cash flow that some sources believe could help Aramco propel its valuation to $2 trillion.

Aramco announced a special dividend of $20 billion, noting it reflects its exceptionally strong 2018 performance.

The CFO told investors the company has sufficient free cash flow to give it enough room to purchase a stake in Reliance Industries, a deal announced by Reliance earlier Monday. The stake in India’s Reliance Industries, an oil and chemicals producer, allows Aramco to diversify ahead of its IPO.

“As you and everyone knows, India is a large country with large demand, and I think growing demand,” he said, adding the deal enhances the company’s global downstream strategy.

Earlier, Reliance Chairman Mukesh Ambani told his company’s annual meeting that Aramco is the biggest foreign investment in the company ever and among the largest foreign investments ever in India. Under the deal, Aramco would supply its Jamnagar refineries with 700,00 barrels a day of oil on a long-term basis, about half the refining complex’ s capacity.

Aramco said it is focusing more effort on gas development, and that it is an area of growth. It also expects its Marjan and Berri developments to contribute production capacity of 2.5 million cubic meters of gas and 550,000 barrels a day of oil. Marjan is an offshore field off the east coast of Saudi Arabia. and Berri, also in Saudi Arabia, is both onshore and offshore.

The company also said its East-West pipeline would soon be expanded to carry 7 million barrels a day of crude, from 5 million currently.

–Reuters contributed to this report


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: patti domm
Keywords: news, cnbc, companies, saudi, companys, million, company, prices, reliance, told, billion, oil, public, ready, aramco


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Saudi Aramco IPO could be back on front burner, as company plans first ever investor call

The success of Saudi Aramco’s debt offering has given Saudi officials confidence that they can bring their IPO to market sometime in 2020, sources familiar with their thinking said. Saudi Aramco’s board was meeting with bankers in Boston this week, and the IPO of the world’s biggest oil company was on the agenda. Recently, Saudi energy minister Khalid Al-Falih said Aramco would likely go public in 2020, 2021. Saudi Aramco issued $12 billion in bonds in April in an offering that saw sky-high dema


The success of Saudi Aramco’s debt offering has given Saudi officials confidence that they can bring their IPO to market sometime in 2020, sources familiar with their thinking said. Saudi Aramco’s board was meeting with bankers in Boston this week, and the IPO of the world’s biggest oil company was on the agenda. Recently, Saudi energy minister Khalid Al-Falih said Aramco would likely go public in 2020, 2021. Saudi Aramco issued $12 billion in bonds in April in an offering that saw sky-high dema
Saudi Aramco IPO could be back on front burner, as company plans first ever investor call Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-08  Authors: patti domm
Keywords: news, cnbc, companies, prince, investor, aramco, oil, offering, saudi, burner, market, ipo, plans, company, prices, source


Saudi Aramco IPO could be back on front burner, as company plans first ever investor call

The success of Saudi Aramco’s debt offering has given Saudi officials confidence that they can bring their IPO to market sometime in 2020, sources familiar with their thinking said.

Saudi Aramco’s board was meeting with bankers in Boston this week, and the IPO of the world’s biggest oil company was on the agenda. Recently, Saudi energy minister Khalid Al-Falih said Aramco would likely go public in 2020, 2021. One source suggested the company is trying to move the timeline forward, with an announcement in the fall and the offering of a small percentage of Aramco next year.

Aramco is expected to hold an investor call Monday, its first ever following its board meeting. It is expected bond investors will be on the call, and it is not clear which company officials will speak and what they will say about the stock offering, or whether they will take questions.

Saudi Arabia’s Crown Prince Mohammed bin Salman had planned the public offering of Aramco to be the cornerstone of his vision to transform the kingdom from an oil producer to a more diversified economy. But it was put off previously, and Aramco reached a $69.1 billion deal to purchase a majority stake in petrochemicals firm Sabic from the kingdom’s sovereign wealth fund, boosting the fund’s buying power and ability to diversify holdings.

MBS, as the crown prince is known, is seeking a $2 trillion valuation for Saudi Aramco, but there still seems to be a gap between what the prince would like to see and what bankers view as a reasonable market price, given the wild cards of oil prices, stock prices and the global economy. The bankers’ valuations average around $1.5 trillion, one source said.

“It’s going to be a lot harder job to get there, especially since going into 2020 doesn’t look fantastic for oil prices,” said one source. But the company may show strong cash flow to help make its case.

“It’s clear the 10 fold over-subscription for the debt gave a giant burst of confidence to doing an IPO,” said one source. “But there’s a big difference between a debt offering and reporting quarterly performance to shareholders around the world.”

Saudi Aramco issued $12 billion in bonds in April in an offering that saw sky-high demand of $100 billion.

A report that Saudi Arabia called other producers to discuss how to support oil prices helped kick up crude prices Thursday after its steep decline. Brent futures were trading at $57.47 per barrel, and it is down 11.7% month-to-date. One source dismissed that report as unlikely, based on the fact that OPEC is currently producing about 2 million barrels a day beneath its quota and cutting further would be futile.

Saudi Arabia earlier announced that demand for its oil was improved, with a 700,000 barrel per day increase in customer request for supply for September, over August.

“Obviously, it’s the latest round of verbal intervention by the Saudis to try to push back against the narrative that the demand growth outlook is cratering for the oil market,” said John Kilduff of Again Capital.


Company: cnbc, Activity: cnbc, Date: 2019-08-08  Authors: patti domm
Keywords: news, cnbc, companies, prince, investor, aramco, oil, offering, saudi, burner, market, ipo, plans, company, prices, source


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Saudi oil giant Aramco strikes deal to buy US natural gas from Sempra Energy

Saudi Aramco has signed an agreement to buy U.S. liquefied natural gas from San Diego-based utility Sempra Energy, advancing the state-owned oil giant’s goal of becoming a player in the growing international gas market. Subsidiaries of the two companies, Sempra LNG and Aramco Services Company, announced on Wednesday that they’ve signed a heads of agreement, which sets up a deal that would see Sempra sell Aramco 5 million tons per year of LNG for the next 20 years. The supplies would come from th


Saudi Aramco has signed an agreement to buy U.S. liquefied natural gas from San Diego-based utility Sempra Energy, advancing the state-owned oil giant’s goal of becoming a player in the growing international gas market. Subsidiaries of the two companies, Sempra LNG and Aramco Services Company, announced on Wednesday that they’ve signed a heads of agreement, which sets up a deal that would see Sempra sell Aramco 5 million tons per year of LNG for the next 20 years. The supplies would come from th
Saudi oil giant Aramco strikes deal to buy US natural gas from Sempra Energy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: natasha turak tom dichristopher, natasha turak, tom dichristopher, sens mike crapo, r-idaho, sheldon whitehouse, d-rhode island
Keywords: news, cnbc, companies, deal, port, saudi, lng, sempra, buy, signed, aramco, oil, gas, agreement, tons, energy, strikes, natural, million, giant


Saudi oil giant Aramco strikes deal to buy US natural gas from Sempra Energy

Saudi Aramco has signed an agreement to buy U.S. liquefied natural gas from San Diego-based utility Sempra Energy, advancing the state-owned oil giant’s goal of becoming a player in the growing international gas market.

Subsidiaries of the two companies, Sempra LNG and Aramco Services Company, announced on Wednesday that they’ve signed a heads of agreement, which sets up a deal that would see Sempra sell Aramco 5 million tons per year of LNG for the next 20 years. The agreement is subject to negotiation and finalization.

“If converted to a sales and purchase agreement (SPA), this will be one of the largest LNG deals ever signed and the largest deal signed since 2013,” said Giles Farrer, research director at energy and minerals consultancy Wood Mackenzie.

The supplies would come from the first phase of Sempra’s Port Arthur LNG facility in Texas, which is currently under development. The agreement will see Aramco make a 25% equity investment in the facility.

The agreement is a major boost for Sempra, one of several companies trying to develop U.S. facilities to export LNG, or natural gas chilled to liquid form for transport. LNG developers need to line up customers in order to finance the multi-billion dollar export terminals, so the agreement with Aramco makes it more likely that Sempra will green light the Port Arthur facility.

Sempra previously struck a 20-year deal to sell 2 million tons per year from Port Arthur to the Polish Oil and Gas Company. Once the Aramco deal is finalized, Sempra will have locked in buyers for 7 million tons of Port Arthur’s 11 million tons per year of capacity.


Company: cnbc, Activity: cnbc, Date: 2019-05-22  Authors: natasha turak tom dichristopher, natasha turak, tom dichristopher, sens mike crapo, r-idaho, sheldon whitehouse, d-rhode island
Keywords: news, cnbc, companies, deal, port, saudi, lng, sempra, buy, signed, aramco, oil, gas, agreement, tons, energy, strikes, natural, million, giant


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Saudi energy minister expects Aramco bond demand at ‘north of’ $30 billion

Saudi Energy Minister Khalid al Falih expects robust demand for state oil giant Saudi Aramco’s first-ever bond issuance, the deal for which is expected to close on Wednesday. Demand for the bond should be “north of” $30 billion, al Falih said while speaking at the inaugural Gulf Intelligence Saudi Arabia Energy Forum in Riyadh on Monday. Saudi Arabia’s state-controlled energy giant Aramco plans to tap bond markets this week, marking the first-ever debt issuance from the world’s largest oil firm


Saudi Energy Minister Khalid al Falih expects robust demand for state oil giant Saudi Aramco’s first-ever bond issuance, the deal for which is expected to close on Wednesday. Demand for the bond should be “north of” $30 billion, al Falih said while speaking at the inaugural Gulf Intelligence Saudi Arabia Energy Forum in Riyadh on Monday. Saudi Arabia’s state-controlled energy giant Aramco plans to tap bond markets this week, marking the first-ever debt issuance from the world’s largest oil firm
Saudi energy minister expects Aramco bond demand at ‘north of’ $30 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-08  Authors: natasha turak, ahmed jadallah
Keywords: news, cnbc, companies, bond, giant, falih, north, saudi, aramco, energy, issuance, billion, 30, oil, firstever, minister, expects, demand


Saudi energy minister expects Aramco bond demand at 'north of' $30 billion

Saudi Energy Minister Khalid al Falih expects robust demand for state oil giant Saudi Aramco’s first-ever bond issuance, the deal for which is expected to close on Wednesday.

Demand for the bond should be “north of” $30 billion, al Falih said while speaking at the inaugural Gulf Intelligence Saudi Arabia Energy Forum in Riyadh on Monday.

Saudi Arabia’s state-controlled energy giant Aramco plans to tap bond markets this week, marking the first-ever debt issuance from the world’s largest oil firm and enabling greater visibility into its financial performance.

Initial media reports put the Aramco bond issuance amount at $10 billion, which sources have told CNBC is “reasonable as a minimum.”


Company: cnbc, Activity: cnbc, Date: 2019-04-08  Authors: natasha turak, ahmed jadallah
Keywords: news, cnbc, companies, bond, giant, falih, north, saudi, aramco, energy, issuance, billion, 30, oil, firstever, minister, expects, demand


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Saudi Aramco gets first credit rating ahead of bond debut

Saudi Aramco, the world’s top oil producer, has been rated A+ by Fitch in its first-ever credit rating, ahead of the state oil giant’s first global bond sale and following 2018 earnings that dwarfed those of international oil majors. Aramco generated earnings before interest, tax and depreciation (EBITDA) of $224 billion in 2018, Fitch said on Monday, surpassing ExxonMobil, the world’s largest listed oil firm. The Saudi oil producer is expected to start meeting bond investors this week, sources


Saudi Aramco, the world’s top oil producer, has been rated A+ by Fitch in its first-ever credit rating, ahead of the state oil giant’s first global bond sale and following 2018 earnings that dwarfed those of international oil majors. Aramco generated earnings before interest, tax and depreciation (EBITDA) of $224 billion in 2018, Fitch said on Monday, surpassing ExxonMobil, the world’s largest listed oil firm. The Saudi oil producer is expected to start meeting bond investors this week, sources
Saudi Aramco gets first credit rating ahead of bond debut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-01  Authors: ahmed jadallah
Keywords: news, cnbc, companies, worlds, bond, saudi, gets, ahead, oil, total, fitch, credit, shell, aramcos, production, rating, 2018, aramco, debut


Saudi Aramco gets first credit rating ahead of bond debut

Saudi Aramco, the world’s top oil producer, has been rated A+ by Fitch in its first-ever credit rating, ahead of the state oil giant’s first global bond sale and following 2018 earnings that dwarfed those of international oil majors.

Aramco generated earnings before interest, tax and depreciation (EBITDA) of $224 billion in 2018, Fitch said on Monday, surpassing ExxonMobil, the world’s largest listed oil firm.

Aramco intends to issue its first U.S. dollar-denominated bonds, expected to be for at least $10 billion, in the second quarter to help finance its acquisition of a stake in Saudi Basic Industries Corp, the world’s fourth-largest petrochemicals maker.

The Saudi oil producer is expected to start meeting bond investors this week, sources familiar with the matter told Reuters on Thursday.

Last week, Aramco said it would buy a 70 percent stake in SABIC from the kingdom’s wealth fund for $69.1 billion, in one of the biggest deals in the global chemical industry.

At the end of 2018, Aramco’s cash balances exceeded its balance-sheet debt, Fitch said.

“We project that Saudi Aramco’s leverage will remain low, even after the recently announced acquisition of SABIC, which we expect to be predominantly funded from the company’s free cash flow (FCF),” the ratings agency said.

Credit ratings allow investors to compare and assess the credit quality of bond issuers and their debt securities, and are important in determining how much borrowers have to pay.

Aramco has hoped to match the ratings of Exxon and Royal Dutch Shell, a source familiar with the matter has told Reuters. Exxon is rated triple-A by Moody’s and AA+ by its rival S&P, putting it on par with the rating of the United States.

As a standalone business, Aramco could outweigh its international peers, but most of its assets are in Saudi Arabia and it is tightly linked to Saudi Arabia’s economic policies.

National oil companies are generally rated at the same level as or slightly lower than their governments.

“Saudi Aramco’s rating is constrained by that of Saudi Arabia (A+/Stable). This reflects the influence the state exerts on the company through taxation and dividends, as well as regulating the level of production in line with its OPEC commitments,” Fitch said.

The rating agency said it put Saudi Aramco’s “standalone credit profile (at) ‘AA+'”.

Aramco “is less integrated into natural gas and downstream than some of its international peers, such as Shell and Total, which makes it more exposed to oil prices although this is mitigated by low cost of production, its downstream expansion strategy, and the acquisition of SABIC,” Fitch said.

Aramco is still by far the world’s biggest oil producing company, ahead of regional peers like Abu Dhabi National Oil Company (ADNOC) and listed oil majors Shell, Total and BP, Fitch said.

“In 2018, its (Aramco’s) liquids production and its total hydrocarbon production averaged 11.6 million and 13.6 million barrels of oil equivalent per day, respectively,” Fitch said.


Company: cnbc, Activity: cnbc, Date: 2019-04-01  Authors: ahmed jadallah
Keywords: news, cnbc, companies, worlds, bond, saudi, gets, ahead, oil, total, fitch, credit, shell, aramcos, production, rating, 2018, aramco, debut


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Saudi Aramco reaches $69.1 billion deal to buy majority stake in petrochemicals firm Sabic

Saudi Arabia’s state-controlled energy giant Aramco has reached a $69.1 billion deal to purchase a majority stake in petrochemicals firm Sabic from the kingdom’s sovereign wealth fund. The deal will see Aramco purchase the 70 percent stake in Sabic held by Saudi Arabia’s Public Investment Fund in a share purchase agreement. It will expand Aramco’s footprint in refining and petrochemicals and inject cash into PIF, which underpins ambitious plans to remake Saudi Arabia’s economy. “This is a win-wi


Saudi Arabia’s state-controlled energy giant Aramco has reached a $69.1 billion deal to purchase a majority stake in petrochemicals firm Sabic from the kingdom’s sovereign wealth fund. The deal will see Aramco purchase the 70 percent stake in Sabic held by Saudi Arabia’s Public Investment Fund in a share purchase agreement. It will expand Aramco’s footprint in refining and petrochemicals and inject cash into PIF, which underpins ambitious plans to remake Saudi Arabia’s economy. “This is a win-wi
Saudi Aramco reaches $69.1 billion deal to buy majority stake in petrochemicals firm Sabic Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-27  Authors: tom dichristopher, katie kramer
Keywords: news, cnbc, companies, aramco, buy, arabias, petrochemicals, billion, purchase, deal, million, firm, shares, reaches, refining, majority, sabic, saudi, stake


Saudi Aramco reaches $69.1 billion deal to buy majority stake in petrochemicals firm Sabic

Saudi Arabia’s state-controlled energy giant Aramco has reached a $69.1 billion deal to purchase a majority stake in petrochemicals firm Sabic from the kingdom’s sovereign wealth fund.

The deal will see Aramco purchase the 70 percent stake in Sabic held by Saudi Arabia’s Public Investment Fund in a share purchase agreement. It will expand Aramco’s footprint in refining and petrochemicals and inject cash into PIF, which underpins ambitious plans to remake Saudi Arabia’s economy.

Aramco and PIF announced the news Wednesday shortly after CNBC and other news outlets confirmed the transaction. The deal remains subject to closing conditions and regulatory approvals.

“This is a win-win-win transaction and a transformational deal for three of Saudi Arabia’s most important economic entities,” PIF Managing Director Yasir Othman Al-Rumayyan said in a statement. “It will unlock significant capital for PIF’s continued long-term investment strategy, underpinning sectoral and revenue diversification for Saudi Arabia.”

Saudi Arabia is attempting to diversify its economy and reduce its reliance on oil revenues under a plan called Vision 2030 directed by Crown Prince Mohammed bin Salman. Plans to sell shares in Aramco are meant to underwrite that endeavor, but an initial public offering on an international exchange has been delayed by several years.

The Aramco-Sabic deal further delayed the IPO plans — the company now expects to list shares in 2021. The kingdom sought to raise $100 billion by publicly listing a small percentage of Aramco.

Wednesday’s agreement comes as Aramco, the world’s largest oil company by production, is expanding its high-value downstream operations, which includes refining crude oil into fuels and making petrochemicals.

Aramco currently has the capacity to produce 17 million tons of petrochemicals per year, while Sabic’s capacity is 62 million tons. By 2030, Aramco aims to increase its refining capacity from 4.9 million barrels per day to 8 million to 10 million bpd.

“This transaction is a major step in accelerating Saudi Aramco’s transformative downstream growth strategy of integrated refining and petrochemicals,” Aramco President and CEO Amin Nasser said in a statement. “SABIC is a world-class company with an outstanding workforce and chemicals capabilities.”

Sabic has operations in 50 countries and employees about 35,000 people around the world.

Investors own the remaining 30 percent stake in Sabic through shares listed on the Saudi stock exchange. Aramco says it does not intend to purchase those shares.

— CNBC Hadley Gamble contributed reporting to this story.


Company: cnbc, Activity: cnbc, Date: 2019-03-27  Authors: tom dichristopher, katie kramer
Keywords: news, cnbc, companies, aramco, buy, arabias, petrochemicals, billion, purchase, deal, million, firm, shares, reaches, refining, majority, sabic, saudi, stake


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Saudi Aramco says electric vehicles won’t heavily impact oil demand

The world’s largest energy company says the electrification of vehicles isn’t anywhere near ready to overtake the traditional engine in the transport sector. The transport industry accounts for more than half of oil demand and last year Morgan Stanley forecast that by 2025 there could be 36 million electric vehicles on the road globally. Meanwhile, the state-owned oil giant Saudi Aramco produces roughly 10 million barrels of crude a day, suggesting that any fall in demand could be highly damagin


The world’s largest energy company says the electrification of vehicles isn’t anywhere near ready to overtake the traditional engine in the transport sector. The transport industry accounts for more than half of oil demand and last year Morgan Stanley forecast that by 2025 there could be 36 million electric vehicles on the road globally. Meanwhile, the state-owned oil giant Saudi Aramco produces roughly 10 million barrels of crude a day, suggesting that any fall in demand could be highly damagin
Saudi Aramco says electric vehicles won’t heavily impact oil demand Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: david reid
Keywords: news, cnbc, companies, oil, engine, wont, traditional, transport, vehicles, heavily, electric, saudi, energy, ice, source, demand, impact, aramco


Saudi Aramco says electric vehicles won't heavily impact oil demand

The world’s largest energy company says the electrification of vehicles isn’t anywhere near ready to overtake the traditional engine in the transport sector.

The transport industry accounts for more than half of oil demand and last year Morgan Stanley forecast that by 2025 there could be 36 million electric vehicles on the road globally. Further analysis at IHS Markit claimed that 30 percent of new car sales by 2040 would be electric. The switch from gasoline and diesel cars to electric powertrains has led some to suggest that global oil consumption could fall.

Meanwhile, the state-owned oil giant Saudi Aramco produces roughly 10 million barrels of crude a day, suggesting that any fall in demand could be highly damaging to the business.

But Chief Technology Officer, Ahmad Al Khowaiter, told CNBC’s Annette Weisbach at the Geneva Motor Show Tuesday that electrification is not about to defeat the internal combustion engine (ICE) any time soon.

“The consensus from forecasters is that the internal combustion engine will be with us for decades to come,” he said, before adding “We are still expecting 90 percent of vehicles to be driven by ICE by the mid-century.”

Al Khowaiter is at the Geneva International Motor Show in a bid to showcase how his firm can help bring down emissions in a traditional ICE engine. He argued that, at least in the medium term, making gasoline and diesel engines more efficient would be the best way to reduce emissions.

“We see a lot of value in improving the efficiency of the ICE which is a primary source of energy for much of what we are talking about. So even electrified vehicles get their source of energy from a power plant somewhere,” he said.

The executive said Saudi Aramco views working with the auto industry on reducing emissions as part of its “responsibility.”


Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: david reid
Keywords: news, cnbc, companies, oil, engine, wont, traditional, transport, vehicles, heavily, electric, saudi, energy, ice, source, demand, impact, aramco


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Saudi Aramco agrees tie-up for $10 billion project in China

The deal was signed during a visit by Saudi Crown Prince Mohammed bin Salman to Beijing as part of an Asia tour. Aramco will hold 35 percent of the new company, with Norinco and Panjin Sincen owning 36 percent and 29 percent respectively, the statement said. Aramco will supply up to 70 percent of the crude feedstock for the complex, which is expected to start operations in 2024. The value of the project means it is the largest Sino-Foreign joint-venture, Aramco said. Saudi Aramco, North Huajin a


The deal was signed during a visit by Saudi Crown Prince Mohammed bin Salman to Beijing as part of an Asia tour. Aramco will hold 35 percent of the new company, with Norinco and Panjin Sincen owning 36 percent and 29 percent respectively, the statement said. Aramco will supply up to 70 percent of the crude feedstock for the complex, which is expected to start operations in 2024. The value of the project means it is the largest Sino-Foreign joint-venture, Aramco said. Saudi Aramco, North Huajin a
Saudi Aramco agrees tie-up for $10 billion project in China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: ahmed jadallah
Keywords: news, cnbc, companies, company, aramco, china, billion, tieup, agrees, jointventure, saudi, project, norinco, sincen, retail, panjin, statement


Saudi Aramco agrees tie-up for $10 billion project in China

Aramco and Norinco, along with Panjin Sincen, will form a new company called Huajin Aramco Petrochemical Co as part of a project that will include a 300,000 barrels per day (bpd) refinery with a 1.5 million metric tonnes per annum (mmtpa) ethylene cracker, Aramco said on Friday.

The deal was signed during a visit by Saudi Crown Prince Mohammed bin Salman to Beijing as part of an Asia tour.

Aramco will hold 35 percent of the new company, with Norinco and Panjin Sincen owning 36 percent and 29 percent respectively, the statement said.

Aramco will supply up to 70 percent of the crude feedstock for the complex, which is expected to start operations in 2024. The value of the project means it is the largest Sino-Foreign joint-venture, Aramco said.

The agreement “is a clear demonstration of Saudi Aramco’s strategy to move from beyond a buyer-seller relationship, to one where we can make significant investments to contribute to China’s economic growth and development,” Aramco CEO Amin Nasser said in the statement.

It said there were also plans to establish a fuels retail business. Saudi Aramco, North Huajin and Liaoning Transportation Construction Investment Group are expected to form a three-party marketing joint-venture company by the end of 2019, it said.

This will develop a retail fuel stations network in target markets, the statement added.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: ahmed jadallah
Keywords: news, cnbc, companies, company, aramco, china, billion, tieup, agrees, jointventure, saudi, project, norinco, sincen, retail, panjin, statement


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China sees ‘enormous potential’ in Saudi economy as crown prince visits

China sees “enormous potential” in Saudi Arabia’s economy and wants more high-tech cooperation, the Chinese government’s top diplomat said, as Saudi Crown Prince Mohammed bin Salman began a two-day trip to Beijing. Meeting Saudi Foreign Minister Adel al-Jubeir, State Councillor Wang Yi said the main features of their ties were respect, understanding and support for each other, China’s Foreign Ministry said in a statement late on Thursday. “All countries in the world have the right to develop, an


China sees “enormous potential” in Saudi Arabia’s economy and wants more high-tech cooperation, the Chinese government’s top diplomat said, as Saudi Crown Prince Mohammed bin Salman began a two-day trip to Beijing. Meeting Saudi Foreign Minister Adel al-Jubeir, State Councillor Wang Yi said the main features of their ties were respect, understanding and support for each other, China’s Foreign Ministry said in a statement late on Thursday. “All countries in the world have the right to develop, an
China sees ‘enormous potential’ in Saudi economy as crown prince visits Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: lintao zhang, getty images
Keywords: news, cnbc, companies, ministry, china, chinas, market, crown, prince, foreign, potential, enormous, wang, aramco, oil, visits, sees, saudi, economy


China sees 'enormous potential' in Saudi economy as crown prince visits

China sees “enormous potential” in Saudi Arabia’s economy and wants more high-tech cooperation, the Chinese government’s top diplomat said, as Saudi Crown Prince Mohammed bin Salman began a two-day trip to Beijing.

The Saudi delegation, including top executives from Aramco, arrived on Thursday on an Asia tour that has already seen the kingdom pledge investment of $20 billion in Pakistan and seek additional investment in India’s refining industry.

The crown prince will meet President Xi Jinping, who has made stepping up China’s presence in the Middle East a key foreign policy objective, despite its traditional low-key role there.

Meeting Saudi Foreign Minister Adel al-Jubeir, State Councillor Wang Yi said the main features of their ties were respect, understanding and support for each other, China’s Foreign Ministry said in a statement late on Thursday.

“All countries in the world have the right to develop, and Saudi Arabia is an emerging market country with enormous potential,” the ministry paraphrased Wang as saying.

China supports Saudi’s efforts to diversify its economy and is willing to strengthen high-tech cooperation, Wang added.

Saudi Aramco, the world’s top oil exporter, will sign a pact to build a refinery and petrochemical project in northeastern Liaoning province in a joint venture with China’s defense conglomerate Norinco, three sources with knowledge of the matter said.

The investments could help Saudi Arabia regain its place as the top oil exporter to China, a position Russia has held for the last three years. Saudi Aramco is set to boost market share by signing supply deals with non-state Chinese refiners.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: lintao zhang, getty images
Keywords: news, cnbc, companies, ministry, china, chinas, market, crown, prince, foreign, potential, enormous, wang, aramco, oil, visits, sees, saudi, economy


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