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World’s Most Profitable Company | Case Study

Do you know The World’s Most Profitable Company?

It is Saudi Aramco, the world’s biggest Oil Exporter and Most Profitable Company In the World, located In Saudi Arabia.

The Company has 270 Billion barrels in Reserve and has an estimated valuation of the company is 5 Trillion USD.

In First half of 2019 the company has reported net income of $46.9 Billion. Source Wiki

Saudi Aramco has invested $100 billion  in India. 

This is a detailed  case study on Saudi Aramco, How Saudi Aramco has become  the most profitable company in the world.

So let’s Start The Case Study Of World’s Most Profitable Company

 About Saudi Aramco 

Saudi Aramco  was 87 year old Stated own Oil Company founded by Standard Oil Co. of California in 1933.

Saudi Arabia. Saudi Aramco is officially known for  Saudi Arabian Oil Company and official based in Dhahran, Saudi Arabia

Saudi Aramco is the world’s largest Company by revenue and profit. It has the second largest daily production on world and has a 270 Billion Barrels in reserve.

The Company started his first commercial oil production in 1939, but officially established in late  1988. 

 It operates the world’s largest single hydrocarbon network system. 

 

Refinery Owned By Saudi Aramco

 

  • Jazan Refinery and terminal projects

This Refinery was located in Jazan, Saudi Arabia. The construction of company was ongoing. This Refinery produced 400000 BBl/Day.

  • Jeddah Refinery

This refinery was situated in Jeddah, Saudi Arabia, Its daily production is 78,000 bbl

  •  Ras Tanura Refinery 

This Refinery refinery is located in Ras Tanura, Saudi Arabia. Its Daily production is 5,50,000. 

  • Riyadh Refinery

Riyadh Refinery is located in Riyadh, Saudi Arabia And its’ daily production is 126,000.

  • Yanbu Refinery 

This is refinery is located in Yanbu, Saudi Arabia. It’s daily production is 245000.

 

Refining Ventures Owned by Saudi Aramco

  • The Saudi Aramco Mobil Refinery Co. Ltd. 

This Refining Venture is located in Yanbu and its daily refining capacity is 400000 bbl per day.

  •  The Saudi Aramco Shell Refinery Co. (SASREF)

This refining venture is situated in Jubail, Saudi Arabia. It’s daily refining capacity  is 3,00,000 barreal. 

  • Petro Rabigh

This Reffing Venture is located in Rabigh, Saudi Arabia. It’s daily refining capacity is 400000.  

  • Saudi Aramco Base Oil Co. (Luberef)

This venture located in Jeddah, Saudi Arabia. 

  • Saudi Aramco Total Refining and Petrochemical Co. (SATORP)

This venture is located in Jubail, Saudi  Arabia. It’s daily Refining capacity is 4,00,000 bearral.

  • Yanbu Aramco Sinopec Refinery (YASREF)

This Reffing venture is located in Yanbu, Saudi Arabia. It’s refining capacity is 4,00,00 barrels per day.

  • Fujian Refining and Petrochemical Co. (FRPC).

This Reffing Venture is located in China.

  • Sinopec SenMei (Fujian) Petroleum Co. Ltd. (SSPC)

This Reffing Venture also located in China.

  • Motiva Enterprises LLC, United States.

This reffing venture located in United States. Its daily refining capacity is 635000 barrels per day. 

  • S-Oil, Republic of Korea 

This Venture is located in Korea. Its daily Refining capacity is 669000 per day. 

  • Saudi Refining Inc., United States

This refinery is situated in the United States.

  • Reliance Industries, India

This Venture is located in India. The company has recently invested in this company. See  The Saudi Aramco India Section for more details. 

How Saudi Aramco Started 

  Saudi Aramco is borne out by an agreement between Saudi Arabian Government and Standard Oil Co. of California.  The Company started its first commercial oil production in 1939. After 1939 companies continuously expand their distribution efforts. In 1949 company hit 5,00,000 barrels per day. They Are also working on developing a pipeline. In 1950 they completed 1212 kilometer pipeline between trans and arabian. This pipeline is world’s largest pipeline. This pipeline helped the company to export their oil to Europe and also cutting the cost of transport.  Company rapidly expand their production operation and hit another milestone in 1962 with the crude oil production of 5 Million Barrels.  In 1973 Saudi Arabian government purchased 25% stake in the company and In later 1973 government increase their stake to 60%. But In 1980, Arabian Government purchased the rest of Stack in the Company. Saudi Aramco’s growth never stopped their, they started investing in other international companies and started their global partnership. In 1991, they purchased a 35% stake in S-Oil Company of South Korea.

Business Model of Saudi Aramco 

Let me explain to you the business model of Saudi Aramco. Saudi Amco is oil production company. A significant  portion of Saudi Aramco consist exploration of Oil. Thus Saudi Aramco has an advanced team of Geophysics and geologist. They have advance research centre where they conduct their research. Their Business model is very simply they find oil and establish their refinery. In refinery oil were produced and They sales  oils to other countries and corporations. The Company also has refining and chemical business. Currently Company’s Capacity is 5.4 Million Barrel per day. Saudi Aramco owned many Oil Refining Ventures. Some of them are based on Saudi Arabia and other are in Europe, Asia and the United States. Company also dealing in chemicals. Company also has shipping business in which companies ship crude oil, refine oil and natural gas to several countries.

How Much Profit Saudi Aramco Make

  Saudi Aramco is the world’s largest profit making and revenue generating Company. Company also passed the most profitable company apple and Google. In 2018 Company generated  $111.1 Billion in net income. In these period Apple company made a net profit of $59.5 billion. This secret reveal how much profitable company is. You can take an estimation of company’s revenue by this figure. Before the year 2018, there is no financial data of company available for Public. This was the first financial data revealed by the company for public because the company was planning to launch Its first Initial Public Offer.

Saudi Aramco’s Investment In India 

Saudi Aramco has made many  global investments. Saudi amaco also invested in India. In India the company’s first strategic investment was $44 billion in which company jointly hold 50% stake. The rest of stake will be owned by Indian Oil Corp, BPCL & HPCL. Company also made a great deal with  Reliance Industry. In these deal Saudi Aramco invested $15 Billion for 20% Stake in Reliance Oil To Chemical for $75 Billion Valuation. This deal was best FDI Deal For India. Company also Supply 5,00,000 crude oil barrels to Reliance Industries limited Refinery at Jamnagar on per day basis.

Management Team of Saudi Aramco

The Giant Saudi Amaco is owned By Saudi Arabia government. Amin H. Nasser is the Chief Executive Officer  and President of Company.
CEO Amin H. Nasser
Chairman HE Yasir Othman Al-Rumayyan
 

Facts & Figure

Categories Energy, Oil and Gas, Renewable Energy
Headquarters Regions  Gulf Cooperation Council (GCC)
Founded Date 1930
Operating Status Active
Number of Employees  10001+
Legal Name Saudi Arabian Oil Co.
IPO Status Public
Company Type For Profit

Digital links of Saudi Armco

 
Website www.saudiaramco.com
Facebook  View on Facebook
LinkedIn View on LinkedIn
Twitter View on Twitter
Contact Email [email protected]

Funding & Rising

   
Organisation Name  Funding Amount  Funding Series  Date
Hyundai Oil Bank  $1.2 Billion   Secondary Market- Hyundai Oil bank  Dec 17, 2019
NexWafe  Not Disclosed  Corporate Round NexWafe  June 19, 2018
Golden Scent  Not Disclosed  Series A Golden Scent Dec 21, 2017
Desktop Metal $115 Million  Series D Desktop Metal July 17, 2017
Oxymem  Not Disclosed  Funding Round Oxymem June 20, 2017
Rive Technology  $17.1 Million  Series E Rive Technology No 12, 2015

World’s Biggest IPO By Saudi Armco 

The Company launched its Initial Public Offer  In 2019. Saudi Aramco value her Initial Public offer at $2 Trillion. But According to A Survey Conduct By  Bloomberg, the pool show that the 40% investors valued it as $1.2-$1.5 Trillion and other valued it $1.1 trillion or less. Company Raised $25.6 billion  from its Initial Public Offer. This is the highest amount raised by any company in the World. The Company breakdown the record of Alibaba- A Chinese E Commerce Giant.  The Company’s Share started trading from 11 Dec with the price of 35.20 SAR. The highest share price of the Company is 38.70 SAR and the lowest price of the share is 34.25 SAR. 

Companies Acquire By Saudi Aramco 

 
  1. Saudi Aramco Acquired SABIC A Diversified Manufacturing Company for $69.1 Billion on 27 March, 2019.
 
  1.  ARLANXEO operates as a synthetic rubber company is another acquired By  Saui Arabia For $1.6 billion on 8 August, 2018
 

Future Plan

  Saudi Aramco has continuously working fast to grow their organization. Some of  their future plans are following  
  • They want to develop their organization as a much more technology and knowledge driven organization
  • By 2030, they want to double their Refining Capacity
  • They also want to expand their Business into Chemicals
  • Create New technologies Using Their Research and Development efforts 
  • Invest in New Business lines 
  • Acquire more potential Organization 
Saudi Aramco is World's Most Profitable Company, located in Saudi Arabia. The Company has an estimated valuation of the company is 5 Trillion USD.
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