Aramco {value} may exceed a trillion dollars

Aramco {value} may exceed a trillion dollars



3/30/2017 0:00

Sam Wilkin translation / Khaled Kassem ,
analysts say in my organization and Stanford Bernstein said Raastad Energy Company "Aramco" Saudi Arabia has a market value exceeds a trillion dollars in the initial public offering after the government reduced the tax burden on the company in order to attract investors.
The lead tax cuts to increase the company 's income by 300 percent, and allows cash earnings of top shareholders The company gives a value ranging from a trillion to a trillion and a half dollars trillion, according to estimates by Bernstein, while the raised Raastad assessment of the company by 250 percent to 1.4 trillion dollars on the assumption the price of a barrel of oil long tide at $ 75.
The Saudi government has recently announced that it will reduce taxes , "Aramco" from 85 percent to 50 percent, which is preparing to offer 5 percent of the largest oil exporter in the world shares to investors. The value of the company varied widely, as the Crown values of Saudi Crown Prince Mohammed bin Salman Petrleoni dollars, while the value of consulting "Wood Mackenzie , " the company before the tax change by about $ 400 billion.
It produces "Aramco" 10 million barrels per day , almost any two and half times more than "Exxon" worth $ 337 billion. And possesses huge accumulations of crude and low for cost, which increases the value of more on the assumption that an independent auditing firm will support Aramco estimates of reserves , which is expected to reached about 260 billion barrels.
It is expected to increase Saudi Arabia 's budget deficit because of the tax cut, because that lost revenue will be offset often increase profits. Aramco also pays 20 percent fees on oil reflected, a tax did not affect the announcement last Monday.
The sale of 5 percent of the company 's total trillion dollars worth will bring $ 50 billion in favor of Saudi Arabia, which is trying to reform and diversify its economy based on oil. That also sell profitable shares will support the sovereign wealth fund , which expects the government of Riyadh which generate investment income enough to be a state revenue source of the president by the year 2030. expects Shell to reach global oil demand peaked before that date, while gaining alternative fuel and electric vehicles are increasingly popular sources .
Maybe being the initial public offering in the second half of 2018, also said the director of "Aramco" Executive Secretary Nasser. The government plans to list its shares in the Saudi market and foreign shares at least one, and markets candidates are London, New York, Tokyo, Singapore and Hong Kong. The advisers JP Morgan Chase and Muelss Independent Counsel Michael Klein will earn millions of dollars .. will receive wages
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