Saudi Aramco Financial Performance from Time To Time

Saudi Aramco Financial Performance from Time To Time

Saudi Aramco Financial Performance from Time to Time-Saudi Aramco is a global oil company that has a billion of assets and revenue and has transformed to be the biggest oil producer in the World. Besides Shell, British Petroleum, Chevron, and ExxonMobil, this company has a large amount of oil reserved. Operationally, Saudi Aramco operates the Ghawar Field, the world’s largest onshore oil field, and the Safaniya Field, the world’s largest offshore oil field.

Historically, this company has started as a joint venture between two parties. The project about the Oil concession agreement signed with Standard Oil of California which creates the California Arabian Standard Oil Company (CASOC) to manage the concession. Along with the development of the company’s business, they can achieve huge production of gas and oil in one day. Basically, in 2020, this company has the Highest single-day crude oil production of 12.1 million Barrels of Oil Per Day (mmbpd) and in 2021, this company can produce Highest single-day natural gas production of 10.8 billion standard cubic feet per day (bscfd).

For a long time since its establishment as a closed company, Officially, in 2019, Aramco becomes a public company with shares listed on Tadawul $12.0 billion of Senior Unsecured Notes issued and listed on the London Stock Exchange (LSE).  Some financial aspects can be analyzed to Investors because of access to the public.

The Assets, Liabilities, and Equities of Saudi Aramco

Billion US DollarBillion US DollarBillion US Dollar
Source : Saudi Aramco Annual Report, 2018-2021

Financially, since 2017, this company still in a good positive position with keeping the assets and liabilities in stable conditions. In 2015, the company has assets of 358 billion US Dollars with liabilities of around 73 billion US Dollars. Meanwhile, in 2019, the assets become 576 billion US Dollar and the Liabilities become 235 billion US Dollars.

The Revenue and Net Income of Saudi Aramco

YearsRevenueNet Income
Billion US DollarBillion US Dollar
Source : Saudi Aramco Annual Report, 2018-2021

In the business operations, this company still shows a positive performance with resulting ne income from 2017 to 2021. Because of the Covid-19 pandemic and the fluctuation of World’s Oil and Gas Price is highly influenced this company’s business performance. In 2017, this company can generate revenue of around 264 billion US Dollars, with net Income of around 75 billion US Dollars. Meanwhile, in 2021, this company can generate revenue 400 billion US Dollars and a Net Income of around 109 billion US Dollars. Amid the pandemic of Covid-19, this company can create profit and show how strong of this Arabian Oil company.

Saudi Aramco Financial Performance from Time To Time- ROE, ROA, DER, NPM

Based on Some Economic indicators, this oil company has a Return on Assets of around 22% on average from 2017 to 2021. Meanwhile, the Return of Equity of this company was around 32% on average from 2017 to 2021. This indicator showed the efficiency of the company in doing their business. The greater of ROA and ROE, the more efficient this company does its business.

In the Net Profit margin parameter, the average value of Net Profit Margin of the company is around 27%. This value indicates that net income comes from 27% of the revenue. The greater of Net Net Profit Margin, the more efficient of the company in generating the income because of the minimum of cost must be sacrificed.

In the Debt-to-Equity Ratio (DER), this company has around DER about 0.5 from 2017 to 2021.  Basically, this indicator shows the financial structure of the company. The more value of DER can exhibit the biggest proportion of Debts than Company’s equity.  Basically, the company with few of liabilities/ debts shows the strong conditions of its financial conditions because they can use their money to expand their business than payback the debts.

Bibliography of Saudi Aramco Financial Performance from Time to Time

Saudi Aramco. 2022. Investor Reports and Presentations. Accessed via on June 29th, 2022.

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