Aramco’s production depends not on market forces, but on Saudi priorities
Saudi Aramco listed 1.5% of its shares on the Riyadh stock exchange, it became the world’s most valuable listed company, with a market capitalisation of $1.9trn or so. The state-backed oil behemoth’s bosses assured investors that low costs and vast reserves would make it resilient in a downturn.
Start with the optimists. On August 10th Amin Nasser, Aramco’s chief executive, touted its “resilience across oil-price cycles”. Aramco may have endured more of a cyclone than a cycle this year, but Mr Nasser’s claim rings true. His firm has fared well, at least relative to rivals. It still made money, $6.8bn in the three months to June, in contrast to the likes of Royal Dutch Shell andOr take Aramco’s debt. At 20.
To the sceptics, saying Aramco is more resilient than rivals is like boasting that milk is sour but not curdled—neither prospect is appetising. The outlook for oil remains uncertain as consumer habits change, electric cars get cheaper and governments mull new climate regulations. . At the height of the price war in April Aramco pumped 12.1m barrels a day—an impressive feat that helped drive down global prices and lower Aramco’s profits. For every dollar the oil price falls, Aramco’s cashflow generally declines by $1.5bn, reckons Neil Beveridge of Bernstein, a research firm.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
US watchdog finds Saudi-UAE arms sale failed to assess threat to civiliansA report revealed the Trump administration didn’t break the law when it expedited $8bn in arms sales to the Gulf nations but concluded it failed to fully assess the humanitarian impact associated with the transfers.
Weiterlesen »
Is Pakistan dependent on Saudi oil?A recent spat between the two Muslim countries shines a spotlight on a deal Riyadh used to bailout cash-strapped Islamabad.
Weiterlesen »
Saudi arms sales: Watchdog finds State Department followed law but failed to address civilian deathsIn selling U.S. weapons to Saudi Arabia, the Trump administration failed to adequately assess and prevent the risk of civilian casualties, said the State Department's top watchdog.
Weiterlesen »
Watchdog report says Trump admin ignored risk to civilians in Saudi arms dealThe inspector general’s report did not evaluate whether the emergency declaration was justified, and it noted that the State Dept. has wide discretion under the law on arms exports and how to define an emergency.
Weiterlesen »
Watchdog report: Pompeo acted properly in Saudi arms saleThe State Department&39;s internal watchdog has found that Secretary of State Mike Pompeo did not act improperly last year when he approved billions of dollars in arms sales to Saudi Arabia without the consent of Congress. The State Department Office of Inspector General concluded in a report released
Weiterlesen »
Will Saudi Crown Prince Mohammed bin Salman appear in a US court?A US court wants to know what role Saudi Arabia’s crown prince played in an alleged Khashoggi style murder plot targeting a former Saudi spy
Weiterlesen »