• 3 minutes War for Taiwan?
  • 7 minutes How China Is Racing To Expand Its Global Energy Influence
  • 10 minutes Is it time to talk about Hydrogen?
  • 15 mins U.S. Presidential Elections Status - Electoral Votes
  • 2 hours Tesla Semi
  • 7 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 8 mins Mail IN Ballot Fraud
  • 12 hours WTI / ​​​​​​​Price Forecasting 
  • 1 day “Did Authorities Do Enough To Find Out Why Oil Prices Went Negative?” By Irina Slav – Nov 26th
  • 16 hours “Consumers Will Pay For Carbon Pricing Costs” by Irina Slav
  • 8 hours Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 13 hours Russia loses its chance to capture the EU gas market
  • 1 day Deceptions Revealed about the “Nord Stream 2 Pipeline” and Germany
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Fund Managers Value Aramco Below $1.5 Trillion

International fund managers and institutional investors largely expect Saudi Aramco to be valued at up to USD$1.5 trillion in the IPO expected next year, according to a survey by investment bank EFG Hermes, with most experts disagreeing with Saudi officials who have said that Saudi Arabia’s oil giant is worth around US$2 trillion.

Among the respondents in a survey by EFG Hermes carried out at an investment conference in Dubai, 39 percent expect the market to evaluate Aramco in the range of between US$1 trillion and US$1.5 trillion, Reuters reported on Monday. A total of 36 percent of respondents expect the valuation to be below US$1 trillion, while another 24 percent of fund managers see Saudi Aramco valued at more than US$1.5 trillion.

Since the Saudis announced plans to sell 5 percent in their oil giant last year -- saying the company could be worth the staggering US$2 trillion -- speculation has been raging as to whether this estimate could really be achieved. If indeed the value were close to US$2 trillion, Saudi Arabia would fetch US$100 billion by selling 5 percent of its crown jewel.

However, most of the attempts at estimates by institutional investors, fund managers and industry professionals are largely based on assumptions and speculation regarding how much oil reserves Saudi Arabia really has, which Aramco businesses would be included in the listed entity, how much income taxes and revenue royalties the company would pay to Saudi Arabia, and where oil prices would go a year from now.

Some of the recent attempts at valuing Aramco have placed the company’s total worth at somewhere between US$400 billion and US$1 trillion, according to various assumptions about the tax rate, the cost of capital, ability to generate cash flow, oil price projections, and potential political sensitivity for future investors.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News