Arab Today, arab today saudi considers ipo for oil giant aramco
Last Updated : GMT 06:10:07
Arab Today, arab today
Arab Today, arab today

Saudi considers IPO for oil giant Aramco

Arab Today, arab today

Arab Today, arab today Saudi considers IPO for oil giant Aramco

Saudi Aramco is the world's largest oil company
Riyadh - AFP

Saudi Arabia is considering issuing shares in state-owned oil giant Saudi Aramco, the kingdom's powerful deputy crown prince told The Economist in a rare interview published Thursday.

"That is something that is being reviewed, and we believe a decision will be made over the next few months," Mohammed bin Salman told the London-based publication after the country posted a record budget deficit due to falling oil prices.

"Personally I'm enthusiastic about this step," which would be in the interests of the market, the company and greater transparency, said the prince.

Aramco could not immediately respond to an AFP request for comment.

The thirty-something son of King Salman chairs the Supreme Council, which has overseen the company since it was separated from the oil ministry last year.

He is also defence minister and heads the kingdom's main economic coordinating council.

Saudi Aramco is the world's largest oil company in terms of crude production and exports.

Saudi Arabia, the largest crude exporter, last week reported a record deficit of $98 billion (90 billion euros) for 2015.

It projected a shortfall of $87 billion in this year's budget, with crude prices currently around $32 a barrel, down from more than $100 early in 2014.

In an unprecedented departure from its decades-old generous welfare system, Riyadh's budget last week announced rises in fuel, electricity, water and other prices.

But Mohammed told The Economist the kingdom is "far" from an economic crisis, because it still has ample reserves and growing non-oil revenues.

The dive in oil prices is largely due to Saudi Arabia's own policies and those of other members of the Organization of the Petroleum Exporting Countries (OPEC).

They refuse to cut crude production as they seek to drive less-competitive players, including US shale producers, out of the market.

- 'Times are tough' -

Analysts expected the kingdom would make only a small stake available to the public.
"It would generate some cash... while at the same time put a price tag on a company that undoubtedly would be one of the biggest in the world," said Ole Hansen, of Saxo Bank.

Abhishek Deshpande, an analyst at Natixis, said talk of an IPO shows the kingdom's determination to address the economic consequences of low oil prices.

"It could be a very big step forward and also means oil prices will stay low for a while," Deshpande said.

Other analysts agreed there would be limited or no effect on the oil market itself.

Jasper Lawler, of CMC Markets, said the Saudi motive is simple: "to raise cash when times are tough".

Experts say escalating tensions between Riyadh and fellow OPEC producer Iran have further dimmed prospects of agreement on a production cut needed to raise prices.

Saudi Arabia severed diplomatic ties with regional rival Iran on Sunday but Mohammed told The Economist he does not foresee a war with the predominantly Shiite state.

"For sure we will not allow any such thing."

The kingdom has adopted a policy of selling shares in all major state-owned firms.

Saudi Arabia's stock exchange for the first time last year allowed foreign banks, brokerage houses, fund managers and insurance companies to invest directly on the Tadawul All-Shares Index (TASI), provided they meet the requirements.

In late 2014, the kingdom's largest initial public offering raised $6 billion for Saudi Arabia's National Commercial Bank.

"The introduction of Aramco will be a major event that will pull the attention of investors towards this market and bring liquidity to the kingdom," said Christopher Dembik, of Saxo Bank.

"Envisaging this possibility is also proof that the (oil) price war constrains in an exacerbated way the country's finances and it's ability to invest in the petroleum sector."

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi considers ipo for oil giant aramco Arab Today, arab today saudi considers ipo for oil giant aramco

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi considers ipo for oil giant aramco Arab Today, arab today saudi considers ipo for oil giant aramco

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Airbus CEO says won't cling to job

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Norway seeks 'Tesla tax' on electric cars

GMT 08:17 2017 Friday ,13 October

Norway seeks 'Tesla tax' on electric cars
Arab Today, arab today Safaa Sultan happy for “Love School”

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:19 2017 Wednesday ,11 October

Bosy reveals behind her participation in festival

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:16 2017 Friday ,13 October

Lufthansa to swallow lion's share

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday