Analysis N°1
First of all, keep an eye on the raw materials market and, more specifically, on the price of oil which the group’s activities largely depend on.
Analysis before buying or selling Saudi Aramco shares
Recently, Saudi Aramco has been listed on the stock market so it's now possible for you to speculate on its price via CFDs or buy this value in order to add it to your stock market portfolio. You can check out some practical information here which will help you to set up a precise analysis for this share with explanations on the activities of the group, a presentation of its main competitors or its recent partnerships. We'll finish by revealing some tips for developing a fundamental quality analysis on this value.
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Elements to consider before selling or buying Saudi Aramco shares
Analysis N°2
Carefully follow OPEC's declarations and all decisions concerning production quotas which will also have a direct impact on the price of this value.
Analysis N°3
You will naturally have to keep an eye on the competitors whose activities are linked to those of Saudi.
Analysis N°4
Also pay attention to all operations likely to modify the growth trends of this group such as partnerships, creation of joint ventures, takeovers or sales of subsidiaries and any other companies in the world.
Analysis N°5
You should also follow the official communications of this group for this fundamental analysis, in particular regarding its strategic growth plans and compare them with the results actually obtained by analysing the annual or quarterly financial results of the group.
General presentation of Saudi Aramco
To start this article about the Saudi Aramco share, we suggest you learn a little more about the company and its activities with a slightly more detailed presentation of the group.
The Saudi Aramco group also known as the Saudi Arabian Oil Company is a Saudi national company specializing in the field of hydrocarbons. Its name actually comes from the contraction of the Arabian American Oil Company.
The company owns all the hydrocarbon resources of the territory too and is currently the very first oil company in the world in terms of reserves and in terms of its production. The company's headquarters are in Dhahran, in the east of the country, and the main oil deposit it operates is located in Ghawar. It's the world's largest deposit.
In August 2019, the Saudi Aramco group published its profit and loss accounts for the first half of 2019 with a net profit down 12% to 41.9 billion euros mainly due to a 4% drop in the average price of crude oil. Its half-year turnover amounted to 146.9 billion dollars.
The major competitors of Saudi Aramco
Obviously, although Saudi Aramco is currently world leader in the oil company sector, it's important to know its main competitors, here are the details:
Sinopec
Number two in this global ranking is Sinopec, also known as China Petroleum and Chemical Corporation which is a Chinese company based in Beijing. However, despite its large size, this company doesn't produce as much as the other companies in this ranking. It's also specialized in refined products such as fuels and produces an average of 1.6 million barrels each day.
China National Petroleum
Third place in the ranking goes to the China National Petroleum Corporation. It produces almost 4.4 million barrels each day.
Petrochina
In fourth place is the Petrochina group which is a Chinese oil and Gas Company and a subsidiary of the China National Petroleum Corporation.
Exxon Mobil
Fifth place in the ranking goes to Exxon Mobil which is a company based in Texas and is also the largest private company in this sector. It operates on the majority of continents in these two business sectors.
Kuwait Petroleum Corporation
In sixth position is the Kuwait Petroleum Corporation, which is the only group to have made no acquisitions. It's one of the few producers in the Persian Gulf forming the backbone of OPEC.
Royal Dutch Shell
In sixth place, the Anglo-Dutch company is one of the most important in the world and has activities all over the globe. The company has recently moved towards a diversification of its activities by developing its production of natural gas.
BP
The British group BP is in seventh position in this ranking, particularly thanks to numerous acquisitions, many of which are in the United States and has been active in this sector for over a century.
TotalEnergy group
In ninth place, the French giant TotalEnergies which operates throughout the oil life cycle with operations worldwide. This group bought Sunpower in 2011 and has therefore developed in the solar energy sector.
Lukoil
Finally, the tenth and last place in this ranking is occupied by Lukoil which is a Russian company bought by Getty Oil in 2000. Most of its production is still carried out in Russia, but the group also has production sites in Iraq.
The major partners of Saudi Aramco
The Saudi Aramco group also has some allies and is able to set up interesting strategic partnerships aimed at promoting its growth and boosting its profitability. Here are some specific and recent examples.
The Dow Chemical Company
In 2011, the Saudi Arabian Oil Company announced a strategic partnership with The Dow Chemical Company based on the creation of a joint venture in order to build and operate a chemical complex of international influence in the industrial city of Jubail in Saudi Arabia. This new joint venture was named Sadara Chemical Company and was the logical evolution of a comprehensive study on the feasibility of the project and the deployment of many engineering and design efforts that began in 2007.
TechnipFMC
In 2019, it was with the TechnipFMC group that Saudi Aramco signed a new long-term partnership. This is a 6-year agreement for engineering, equipment supply, manufacturing, transportation and installation of offshore infrastructure to develop offshore projects for the Saudi Arabian oil company.
Total
Finally, the third and last partnership set up by Saudi Aramco to date is the one it signed with Total. Again, this is a joint venture between the two companies in the development, distribution and sale of petroleum products and related services in Saudi Arabia. The joint venture is owned equally by the two entities and provides for an investment of over one billion dollars on the Saudi market over the next 6 years. This joint venture will also offer motorists premium fuels and a wide range of related services.
76% of retail CFD accounts lose money. This is an advert for trading CFDs on AvaTrade
76% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on AvaTrade
