Research Reports

Saudi Aramco Valuation

November 14 , 2019

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Executive Summary

Saudi Aramco (Aramco) the largest oil producer in the world, accounting for more than 10% of world oil production, has Upstream and Downstream activities with the former accounting for bulk of the profits generated. Upstream division has high gross margins of about 77% compared to 5.8% for the Downstream Division. Upstream activities comprise both crude oil as well as natural gas and its associated products, though much of the production comes from crude oil. Aramco supplies its oil partly to meet the consumption needs of the domestic economy, but main revenues are from exports. It supplies to the domestic economy that are at subsidized rates are compensated by the government for the subsidies provided through price equalization mechanism. Aramco has one of the lowest oil production cost among all the countries due to advantageous geological formation of oil reserves.

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FAQ

Who prepared this report?
Experienced and qualified team of Marmore Mena Intelligence has prepared this report. Since its inception, Marmore has published over 1000 research reports and covered more than 25 varied industries and policy segments; all focused primarily on the GCC economies.

How exhaustive is this report?
The report spans 47 pages

Can we ask questions?
Yes, by all means. You can write your queries to us at enquiry@e-marmore.com

Table of Contents

  1. Executive Summary
  2. Introduction
  3. Background Information about Saudi Aramco
  4. Methodology & Assumptions Adopted for the Valuation
  5. Income and Balance Sheet Projections for Aramco
  6. Free Cash Flow Analysis for Saudi Aramco
  7. Equity Value of Aramco (Upstream plus Downstream plus other assets)
  8. Sensitivity Analysis of Aramco's Valuation Estimate

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