Saudi Aramco Aims To Buy Reliance Stake, Reports Lower Earnings

[rainman + 263]

Saudi Aramco is planning a blockbuster investment in Reliance Industries (RELI.NS), the Indian conglomerate said on Monday, as the Saudi energy giant diversifies its business, where weaker oil prices cut its first-half profit by 12%. In preparation for what could be the world’s largest initial public offering (IPO), state-run Aramco began publishing its results this year as it also started issuing international bonds. The world’s top oil producer plans to launch an IPO by 2020-2021, having postponed its flotation from last year. Saudi Aramco is planning a blockbuster investment in Reliance Industries (RELI.NS), the Indian conglomerate said on Monday, as the Saudi energy giant diversifies its business, where weaker oil prices cut its first-half profit by 12%. In preparation for what could be the world’s largest initial public offering (IPO), state-run Aramco began publishing its results this year as it also started issuing international bonds. The world’s top oil producer plans to launch an IPO by 2020-2021, having postponed its flotation from last year.

[BALBOA + 37]

Everybody needs oil!

[pinto + 293]

They should invest in green technologies to avoid bankruptcy in the future

[francoba + 93]

Just now, pinto said:

They should invest in green technologies to avoid bankruptcy in the future

They did.

[ThunderBlade + 231]

good for them

[damirUSBiH + 327]

Saudi Aramco oil Giant earns $47 billion, a year before was $50 billion.

[John Foote + 1,135]

Ensuring customers for their oil.

Probably not a coincidence the guy who ran Reliance was recruited to Aramco. He has sent self Aramco, but he was at Aramco for the deal making, not running the Chemicals business line which he was a VP in. 

The more Aramco runs around doing these big acquisitions and JVs, the more they put the margins at risk. With their lift costs Aramco should be World Class on profitability. They are middle of the road, and things like this, which they can make strategic sense, do dilute their probability. As an upstream and midstream company, Aramco is still pretty good. As a downstream one, they probably overpay and under-execute.

 

[ceo_energemsier + 1,818]

6 hours ago, pinto said:

They should invest in green technologies to avoid bankruptcy in the future

They do, they turn their black and brown liquid into green

[ceo_energemsier + 1,818]

2 hours ago, John Foote said:

Ensuring customers for their oil.

Probably not a coincidence the guy who ran Reliance was recruited to Aramco. He has sent self Aramco, but he was at Aramco for the deal making, not running the Chemicals business line which he was a VP in. 

The more Aramco runs around doing these big acquisitions and JVs, the more they put the margins at risk. With their lift costs Aramco should be World Class on profitability. They are middle of the road, and things like this, which they can make strategic sense, do dilute their probability. As an upstream and midstream company, Aramco is still pretty good. As a downstream one, they probably overpay and under-execute.

 

They guaranteed a sale of 500,000bpd of their crude exports . ARAMCO is bloated at every level and they have to fund all kinds of social programs therefore the money they made in profits is still very good. Hopefully the MBS is smart and KSA doesnt let or force ARAMCO to go the way PDVSA went and the way NNPC goes.