Financial Analysis of Saudi Arabian Oil Company (Saudi Aramco)

Founded in 1933, Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national petroleum and natural gas company based in Dhahran, Saudi Arabia. The Company is the world's largest integrated oil and gas company. Saudi Aramco is organized into business units based on the main types of activities. At December 31, 2021, Saudi Aramco had two reportable segments, Upstream and Downstream, with all other supporting functions aggregated into a corporate segment. Upstream activities include crude oil, natural gas and natural gas liquids exploration, field development and production. Downstream activities consist primarily of refining and petrochemical manufacturing, supply and trading, distribution and power generation, logistics, and marketing of crude oil and related services to international and domestic customers. Corporate activities include primarily supporting services including Human Resources, Finance and IT is not allocated to Upstream and Downstream. This report analyses the performance of the Company for the five years ended December 31, 2021 and quarter ended March 31, 2022.

Key Discussion Points

• Company's proved reserves of oil and gas
• Saudi Aramco Revenue by Segment
• Saudi Aramco Capital Expenditure
• Company 's Upstream Production cost per barrel
• Operating Profit Margin of Saudi Aramco that is far higher than its global competitors

Did you know?

• Did you know that Aramco is the world's largest integrated oil and gas company.
• The Company's crude oil production accounted for approximately one in every ten barrels of crude oil produced globally in 2021.
• The Company's proved liquids reserves were more than five times the combined proved liquids reserve of the five major IOCs (BP, Chevron, ExxonMobil, Royal Dutch Shell, Total SA).
• The Company had a gross refining capacity of 6.8 million barrels per day and net refining capacity of 4.0 million barrels per day.
• Aramco earned net profit margin of 26.3% in 2021 while all the five major international oil companies either incurred net losses or single digit margins
• Saudi Aramco has the lowest production cost of oil and gas in the world.
• The company earned net profit of USD 148 billion in Q1 2022 compared to a net profit of USD 81.4 billion in Q1 2021.