Aramco's net worth increased by 270% in Q3

By Al Mayadeen English
Source: Agencies
1 Nov 2022 13:29

Aramco's net worth increases to reach $130.3 billion in its third quarter as per the issued financial report for 2022.

Aramco's net worth increases to $130.3 billion in third quarter (Reuters)

In the third quarter of 2022, according to the financial report issued on Tuesday, the Kingdom of Saudi Arabia's Aramco net worth increased by 1.7 times year over year to reach $130.3 billion.

The report read that the "net income for the first nine months of 2022 was SAR 488,784 ($130,342), compared to SAR 290,998 ($77,600) for the same period in 2021. The increase predominantly reflects the impact of stronger crude oil prices and volumes sold, and higher refining margins."

Income growth, according to the newly released report, was "partially offset by an increase in production royalties mainly resulting from higher average effective royalty rate driven by stronger crude oil prices, and higher sales volume."

#Aramco’s strong Q3 2022 earnings and record free cash flow reflects our ability to generate significant value through our low-cost, lower-carbon intensity upstream production and strategically integrated upstream and downstream businesses
#AramcoResults
— aramco (@aramco) November 1, 2022

It also stated that initially, the company's free cash flow for the third quarter of 2022 was anticipated to be $110.2 billion, which is 1.6 times more than its equivalent period in 2021.

KSA's Aramco, the country's state-owned oil firm, was established in 1933 and has its headquarters there. It is worth noting that almost all of the country's oil-producing facilities are under the company's control.

Aramco works with Wall Street advisers for Riyadh listing

KSA's Aramco, according to sources with knowledge of the situation, decided to move forward with preparations for an Initial Public Offering (IPO) of its energy trading division, which would be one of the biggest share sales this year.

The biggest oil company in the world has, since May, appointed three Wall Street firms to be primary advisors, according to Bloomberg News. The goal is to work towards a listing, either by the end of the year or early in 2023, in Riyadh.

Sources claim that the IPO, which Aramco is now broadening to include additional banks in, may value the unit at more than $30 billion.

Given market fluctuation, however, especially in a case of a deteriorating market economy, the IPO may be postponed or even canceled. As of yet, there has been no final decision, the sources claim.

Although weakening economies and increasing interest rates have impacted the global IPO market, Saudi Arabia still has a strong demand for deals. However, the diplomatic spat that recently emerged between Saudi Arabia and the US could threaten the financial stability of the Gulf.