The profits of the downstream activities of the state-owned Saudi company came from the other major counterparts in the first half of 2017, the Bloomberg news agency reported on Monday. Aramco reported almost all of its earnings from upstream operations in that period, with net profit of downstream activities not exceeding $ 842 million, compared with a loss of $ 484 million in the first half of 2016, Bloomberg quoted accounting data. Upstream industries are concerned with exploration and production activities, while the downstream industries are concerned with refining and processing activities.
Shell achieved $ 5 billion in refining and chemicals in the first half of 2017 and Mobil, $ 4.7 billion. Bloomberg said the financial statements did not explain why Aramco was lagging behind other oil companies in the downstream. Last week Aramco, the world’s largest oil producer, reported a net profit of $ 33.8 billion in the first six months of 2017 and cash flows of $ 52.1 billion, reports said last week. Read also For a long time, the financial performance of Aramco, one of the biggest secrets of the oil industry, but with its willingness to launch an IPO this year or next year, it will have to inform investors of the results and the way it works. Aramco pumps about 10 million barrels per day of crude oil, and plans to increase its refining capacity to between 8 million and 10 million barrels per day, from about 5 million barrels a day at the moment. The Wall Street Journal said on March 21 that it had withdrawn from Aramco’s global oil market and would only bid on the Saudi bourse next year, possibly in April 2019. The newspaper based its information on statements attributed to Saudi government officials and people connected to the sale of a stake in the company. US banks had hoped to reap a few hundred million dollars from the IPO of Saudi Arabia, whose market value is estimated at around $ 2 trillion, on international stock exchanges, but Western specialist estimates put the company at $ 1.3 trillion, while Bloomberg estimated Aramco’s market value as Not more than $ 400 billion, and at best $ 1,000 billion. (New Arab News, Reuters) See the news in the source The New Arab