Everything in this world is depended on Oil. I mean to say is…Whatever the work you need to achieve or to carry you need to transport. The goods which you get need to be delivered and the usage of those. Without fuel, it is not possible to accomplish these things.
So practically Oil business has the highest potential in terms of revenue.
Once let’s have a look over the largest producer of Oil. Obviously, this firm origin must in the mentioned countries.
- Russia 10.5
- Saudi Arabia 10
- The United States 9.2
- Iraq 4.3
- China 4.1
- Canada 3.8
- Iran 3.5
- UAE 2.7
- Kuwait 2.5
- Venezuela 2.4
- The total revenue of Saudi Aramco Giant is $111.1 Billion.
- Revenue of Amazon is $10 billion.
- Apple successfully made a net profit of $60 billion.
When we look out through the percentage stats. Saudi Aramco is 166% more profitable than Amazon. On the other hand, it is 60% more profitable than Apple.
How we came to know that the company revenue is like massive?
Aramco has a profit of $111.1 Billion last year according to the 470 Page bond details filed with London-Stock exchange. The company kept its revenue confidential and there is no official data regarding the company till date.
Even now the company is not ready to share its revenue. It has been forced to do that to make step move in the international Bond market. Only, for this reason, the company has shared its financial revenue reports.
Aramco will issue the bond which costs $10 billion and it will be used as a downpayment for it’s $69 Billion purchase stake in Saudi petrochemicals firm Sabic.
Soon after the details submitted by Aramco, it has stated that it is the world’s fifth investment grade. However, the investment grade is lower than Exxon, Shell and Chevron Corp.
Why profits of Aramco are the worlds largest but not the investment.
Obviously, you may think that the profits of the company are reaching a significant level, but not the investments. It stands in the 5th number. There may be certain reasons for the company agenda.
Sharing of Profits with Saudi Government
Saudi Aramco is a state-owned company and it has the right to distribute its profit among the state development. Although the company stands in number 1 position, at the same time the company is sharing half of the profit for the development of Saudi. So practically we need to consider its profits to be half.
Price change in Crude Oil
Crude Oil price fluctuates and it also affects the companies final revenue. So the company needs to be prepared for all types of scenarios during the price change of crude oil. So if the company goes for high investments it will be difficult for the company operating during the price change of crude oil.
Climate change can affect the business because if the wheater is not suitable, they are;nt allowed to conduct the oil extraction. Moreover, missiles have been falling on Aramco’s oil installation.