Saudi Aramco - the world's most valuable company

[al-Hasani]

They have a very good cash flow, nobody can ignore it. Even the management is a bit rough, but the company is performing very well since they are sitting on oil. Its a very valuable company, if it goes to IPO, everybody would buy their options.

No debt either as the only major company in the world.

 

[Wright]

They have a very good cash flow, nobody can ignore it. Even the management is a bit rough, but the company is performing very well since they are sitting on oil. Its a very valuable company, if it goes to IPO, everybody would buy their options.

But how is that "value" determined? By assets, revenues??

What makes is worth more than Exxon mobil?

 

[eddieInUK]

But how is that "value" determined? By assets, revenues??

What makes is worth more than Exxon mobil?

Infinite oil and gas, especially gas, maybe they will produce more gas than oil in the future.

 

[Armstrong]

Come on, don't act like you hadn't had a rainy nose since you were born until your adulthood, it was rainy to the point that teachers used to dismiss you to clean it up. I don't want to elaborate because not everyone can bear the picture.

Its a 'runny nose' not a 'rainy' one !

Go tear your Linguistics Degree to shreds !

That guy is seriously pathetic, he always tries hard to show Arabs as people who don't have history although they are the cradle of civilizations. The least you can do whenever there sth about history is being discussed and you don't have any to share others with is to STFU, not to deny proved history just because you don't have any and want others to not have it too.

Honestly I don't care whether Arabs, Iranians, modern-day Pakistanis, the Indonesians etc. have a History or not - Our present is foOked up enough to not justify delusions of former glories ! And do you know why ? Because we truly aren't the people our ancestors were - We're far short of that.

Iqbal, the poet-philosopher of Pakistan, once said :

Theiii tou vo tumhareii aabaa hiii pur tum kiyaa ho ? Haath pe haath dhareii muntazar-e-furdaa hoo !

'Yes they were indeed your ancestors but what about you ? You sit idly the entire day doing nothing hoping that the past glories of your people would repeat themselves without you moving a muscle ?' - I've paraphrased of course !

It held true for Muslims when he wrote it & it holds true for us now !

 

[BLACKEAGLE]

Its a 'runny nose' not a 'rainy' one !

Go tear your Linguistics Degree to shreds !

I know, but I deliberately wrote it wrong to check whether you know it or not.

 

[Juice]

Aramco is a pride of our nation.

Ours too...since we built and maintain it.

 

[Jade]

They have a very good cash flow, nobody can ignore it. Even the management is a bit rough, but the company is performing very well since they are sitting on oil. Its a very valuable company, if it goes to IPO, everybody would buy their options.

It is not the cash flow that matter, but the cash flow to enterprise that is used to calculate enterprise value. In strict sense, the oil fields doesn't belong to Saudi Aramco, but to the people of Saudi Arabia, hence Saudi people and Saudi government have huge claims over Saudi Aramco's cash flows. Considering that 90% of Saudi Arabia's GDP comes from oil, the cash flows that comes comes into Saudi Aramco goes into running the Saudi government and welfare for Saudi people. At the end, this leaves very little free cash for Saudi Aramco.

As I said the value of Saudi Aramco should not be more than $200 to $400 billion, far less than Apple's $600 billion.

 

[BATMAN]

It may be beyond your imagination, not me.

More Thoughts on the Value of Saudi Aramco | Texas Enterprise

You are the one challenging it.. have you ever involved in any Aramco project?

I'm not sure what you have in mind by technology...
IMO... product of Aramco is petroleum products and they are the leaders by themself in this technology.
If you are talking about the machines involved than.. it is not the prime business of Aramoc... but Aramco does prepare the design and contract documents and the suppliers come with their competitive offers.

I said.. Aramco is second to non the way they handle their operations and projects... is it not good enough for you!

 

[somebozo]

Some people are not just pathetic, they go further with audacity by giving themselves the liberty to underestimate others history that put them into shame, people with virtually no history dare to talk about our history. Take a history lesson:

Nabateans are Arabs:

The Nabataeans, also Nabateans (Arabic: الأنباط‎ al-ʾAnbā&#7789, were ancient Arabs of North Arabia,

Nabataeans - Wikipedia, the free encyclopedia

Egyptians, Babylons, Assyrians..etc are today Arabs.

If Syrians who happen to be Arabs today aren't the legitimate inheritors of Assyrian civilization then who else would those be? The same apply on Egyptians and all other Arab people.

Modern history begins when human started building computers, space ships, jets plane, rockets, space exploration etc.....No one gives a f_ck about who invented the wheel 10,000 years ago. Wheel was considered an invention when humans lived in the civilization of apes. Today even a 2 year old can make a wheel.

In last five hundreds years Arab are only trumpeting their invention of numeric "zero" which makes sense because it represents their contribution to humanity.

 

[Yzd Khalifa]

Ours too...since we built and maintain it.

I'm an too. Anyway, Prior to the nationalization of Aramco, The US didn't expand Aramco! So I guess I'm right to say that the Saudis deserve a credit. But still, I'm thankful to my POB country for helping KSA out .

 

[somebozo]

I'm an too. Anyway, Prior to the nationalization of Aramco, The US didn't expand Aramco! So I guess I'm right to say that the Saudis deserve a credit. But still, I'm thankful to my POB country for helping KSA out .

Saudi take over of Aramco was named SAMAREC and it was a total disaster. American management was then bought back and the company renamed from Aramco to Saudi Aramco.

Saudi Arabia's Samarec Is Dissolved And Merged With Saudi Aramco | Review of Middle East Energy, Finance & Politics | MEES

 

[Yzd Khalifa]

Saudi take over of Aramco was named SAMAREC and it was a total disaster. American management was then bought back and the company renamed from Aramco to Saudi Aramco.



Saudi Arabia's Samarec Is Dissolved And Merged With Saudi Aramco | Review of Middle East Energy, Finance & Politics | MEES

Rubbish

You always make me LoLing my a s s off. KSA took full control of Aramco in 1980, so mind explaining to me how come KSA was able to tolerate a poor disastrous management for 13 years? The reason why KSA brought Aramco back was due to the discovery of 3 more oil fields in the early 90s. SAMAREC couldn't bear the burden on its own ,therefore it was in the best of our interest to merge SAMAREC with Aramco under Sami Ghazal's administration. So, unless you're the merger himself then people might buy your story

Dude, please try not to embarrass yourself.

The Saudi Petromin is a different issue though.

 

[somebozo]

Rubbish

You always make me LoLing my a s s off. KSA took full control of Aramco in 1980, so mind explaining to me how come KSA was able to tolerate a poor disastrous management for 13 years? The reason why KSA brought Aramco back was due to the discovery of 3 more oil fields in the early 90s. SAMAREC couldn't bear the burden on its own ,therefore it was in the best of our interest to merge SAMAREC with Aramco under Sami Ghazal's administration. So, unless you're the merger himself then people might buy your story

Dude, please try not to embarrass yourself.

The Saudi Petromin is a different issue though.

Mergers in shakey economy happen when industries fail and that was precisely the case during 1990's in KSA.
Saudi Arabia wasted gold opportunity to build its industrial base during a time when oil was dirt cheap @ $10 a barrel. Now it is trying to catch up desperately at the wrong time.

Had Saudi Arabia used that window of opportunity by utilizing cheap energy in-house and built its industrial capacity, it would be in better position today to play politics of oil without harming its economy. But no, the kings and princes desperately export cheaper than water oil at all cost to keep the dollar flowing. While Americans laughed their a55 off!


Nothing makes me LOL more than the time of King Fahd!
Those were days when Americans enjoyed more cheaper Saudi petrol than the nation itself, and those were also the days with Saudi produced the best grade crude..now much of what is extracted is from the deeper section of wells with less concentration of light fractions and more water and sand contamination.

 

[Yzd Khalifa]

@somebozo

Mergers in shakey economy happen when industries fail and that was precisely the case during 1990's in KSA.

Let just stop pity-fogging. Obviously, you don't know more about Aramco than Ghazal. First, you claimed that the whole business went to dogs because of the Saudi poor management ,and now I'm hearing another dull excuse for your lack of knowledge.

Saudi Arabia wasted gold opportunity to build its industrial base during a time when oil was dirt cheap @ $10 a barrel. Now it is trying to catch up desperately at the wrong time.

With all seriousness, I'm now beginning to question your knowledge about KSA as well. In case you didn't know, the Saudi industrialization projects began in 1975, however it grew up gradually year by year until 1997, when the Government decided to boost its findings on industrialization. By 2006, the Government decided to spend a tremendous amount of money on industrialization projects across. Just for the record, Today, Riyadh ALONE has as many as 34 industrial complexes which house 7629 factories. In addition to Riyadh, Jeddah, Dammam, Qasim, Hail, Yenbo, Ras Tanura, Abqaiq, Al Jubail, and recently Jazan All of them have their own industrial complexes, with a total of 781 industrial complexes. But the question is, will there be any further developments? I guess Yes! Now put that into your pocket boy, k?

Let me also give you the heads up man that our highest priority is to work with our Asian economic partner like China ,South Korea, Malaysia, Turkey, Singapore, Australia, Taiwan, Indonesia, India, and of course our beastie Pakistan . These nations haven't been affected by the financial craziness that is sweeping across the West and most of these states are racing to the top while the west is racing to the bottom. Today, our interests lie in the east and that will unequivocally help us a lot to develop our industrial infrastructure.

But no, the kings and princes desperately export cheaper than water oil at all cost to keep the dollar flowing. While Americans laughed their a55 off!

I understand the obsession with the ROYALTIES and all, but to be honest I never saw such a degree like this. Neither the King or your PRINCES can pick and choose what to do and what not to do, we don't live in a jungle . Firstly, the King will want to hold a ministerial meeting ,and then he will want to refer to the Shura Council, namely Economy Commission and finally he will want to talk with his advisors along with the Minister of Petroleum ,so the process takes along time

Secondly, The so-called princes are completely isolated from any issue related to energy resources and the likes.

Thirdly, I don't see any sign of desperation from our side for the sake of selling more and more. Thankfully, KSA has above a hundred customers and from the ranting that I can see on the other side, I can hear loud voices demanding to reduce the price of oil on daily basis, I don't know what you're talking about Sir.

The price of oil changes from time to time depending on the world economy ,but I have to agree with you that if we could invested our revenues back in the 90s, the situation might be a bit different. Don't worry we laughed our ***** off at bush when he came to us and begged us for further reductions for oil prices in 08, we kicked his butt don't you remember?

Those were days when Americans enjoyed more cheaper Saudi petrol than the nation itself, and those were also the days with Saudi produced the best grade crude..now much of what is extracted is from the deeper section of wells with less concentration of light fractions and more water and sand contamination.

Thats utterly false bro. You may believe that we rely on one field or two or three ,but I can only say that you don't know the half of it. We aren't worried about the US at all, our relation with than is not about oil at all.

 

[eddieInUK]

It is not the cash flow that matter, but the cash flow to enterprise that is used to calculate enterprise value. In strict sense, the oil fields doesn't belong to Saudi Aramco, but to the people of Saudi Arabia, hence Saudi people and Saudi government have huge claims over Saudi Aramco's cash flows. Considering that 90% of Saudi Arabia's GDP comes from oil, the cash flows that comes comes into Saudi Aramco goes into running the Saudi government and welfare for Saudi people. At the end, this leaves very little free cash for Saudi Aramco.

As I said the value of Saudi Aramco should not be more than $200 to $400 billion, far less than Apple's $600 billion.

Practically, it belongs to the King, not the people. Apple's may exceed for a while, but Aramco will stay there for a long time until people get rid of oil and gas.