Saudi Aramco I.P.O. Is Announced
Source: New York Times
LONDON — Saudi Arabia’s giant state-owned oil producer, Saudi Aramco, announced plans on Sunday to go public, taking the country’s crown jewel and what is probably the world’s most profitable enterprise close to its long-awaited goal: becoming a publicly traded company.
The company said it planned to sell an unspecified percentage of its shares on the Saudi stock exchange, the Tadawul. Trading is expected to begin next month, although it did not specify a date and offered few other specifics. Bankers have told the Saudi government that investors are likely to value the company at about $1.5 trillion, people briefed on the matter said previously. Aramco’s chairman, Yasir Al-Rumayyan, said the announcement represented “important progress” toward delivering “the kingdoms’ blueprint for sustained economic diversification and growth.”
Aramco is the behemoth in the oil business, alone producing about one-tenth of the world’s output. Last year, it made $111 billion in net income, almost twice Apple’s profit and many times the earnings of lesser rivals like Exxon Mobil and Royal Dutch Shell. And Sunday’s announcement sets up what may be the biggest initial public offering ever, with a chance to exceed the nearly $22 billion that Alibaba, the Chinese e-commerce giant, raised in one day in 2014. But Aramco’s initial public offering will fall short of Saudi Arabia’s audacious goals.
When Mohammed bin Salman, the country’s de facto ruler, first announced plans to take the company public in 2016, he said that the company would be valued at about $2 trillion, that the offering would take place by 2017 and that its shares would trade on both a premier international stock exchange, such as New York, London or Hong Kong, as well as the Tadawul in Riyadh. Yet Aramco appears poised to be valued well short of $2 trillion. And its I.P.O. process has proceeded in fits and starts over the past three years, pausing several times over the complications of readying its finances and operations — long shrouded in secrecy, even as it gushed wealth for its kingdom — for the scrutiny of public investors.
Read more: https://www.nytimes.com/2019/11/03/business/dealbook/aramco-ipo.html
= new reply since forum marked as read
if oil is such a good investment, why is saudi arabia divesting by reducing its risk and selling off stock with an ipo?
sounds like a contraindication to me.
https://thinkprogress.org/saudis-plan-2-trillion-ipo-to-end-their-dangerous-addiction-to-oil-596fbb4e111a#.g3dywtvk3
Saudis see writing on the wall, move to get economy off oil before it’s too late
A $2 trillion Saudi Aramco IPO will monetize oil reserves before demand peaks and price collapses for good.
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But if you want a clear cut view, here are two more.
Pick one!
http://oilprice.com/Energy/Energy-General/Time-Bomb-In-Oil-Markets-Goldman-Sachs-Issues-Wa rning.html?utm_source=fark&utm_medium=referral&utm_campaign=im
But of course there is an ominous forecast that gas subsumption will go down, cutting the oil usage.
Then again, this article also quotes some other 'experts' who poo poo the estimated lower gas consumption as overly pessimistic.
Now that clears it up, right? Clear as mud.
Time Bomb In Oil Markets: Goldman Sachs Issues Warning
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Investing in oil companies?
https://theconversation.com/are-fossil-fuel-companies-telling-investors-enough-about-the-risks-of-climate-change-72562
Are fossil fuel companies telling investors enough about the risks of climate change?
February 15, 2017 10.20pm EST
Prior to President Donald Trump taking office, there was a push to require oil and gas companies to inform their investors about the risks of climate change. As governments step up efforts to regulate carbon emissions, the thinking goes, fossil fuel companies’ assets could depreciate in value over time.
>>>>>>>>>> (more at the article)
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can't find it now but saw an article claiming that we are in for excess inventories of gasoline in the coming year or so.
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https://thinkprogress.org/chevron-admits-climate-lawsuits-threaten-profits-33937dd562fd#.1zq0hh4xo
Chevron is first oil major to warn investors of risks from climate change lawsuits
Big Oil’s lies about the existential risk posed by its product are now catching up with the industry and threatening profits.
For the first time, one of the major publicly owned fossil fuel companies admitted publicly to investors that climate change lawsuits poses a risk to risk to its profits.
You’re probably thinking that seems like an obvious admission. After all, 190 nations unanimously agreed in the December 2015 Paris climate deal to leave most fossil fuels in the ground because of the existential threat they pose to human civilization.
But this is Big Oil — the industry that has been denying or pretending to deny the existence of climate change for over half a century.
In the “risk factors� section of Chevron’s 2016 10-K financial performance report to the Securities and Exchange Commission (SEC) — amid a discussion of how those pesky climate rules governments are enacting might hurt demand for its product — is this sentence: “In addition, increasing attention to climate change risks has resulted in an increased possibility of governmental investigations and, potentially, private litigation against the company.�
50 years ago Big Oil bragged about being able to melt glaciers
Naomi Ages, Greenpeace USA’s climate liability project lead, said this is the first time a major oil company admitted that such investigations and private litigation were “a material risk to the company and its shareholders.�
>>>>>>>>>>>>>>>> (more at the article)
a wind turbine too! 
to prop up that fucking regime...........................for greed................read, BlowOut by Rachel Maddow....................
and these country still hasn't paid for me losing my job at United along with thousands of others and to boot and they had a hand in killing 3,000 people............................but everyone is going to oh and ah for this IPO.....................on London, Wall Street and China and other markets....................
