Move over Apple Inc. (NASDAQ:AAPL) The most profitable company in the world is the Saudi state oil producer Saudi Aramco.
An extract of the firm’s accounts published by Fitch Ratings ahead of its debut in the international bond market showed that Saudi Aramco generated earnings before interest, tax and depreciation of $224 billion U.S. in 2018, surpassing American companies such as Apple Inc. ($82 billion U.S. in profits) and Exxon Mobil Corp. (NYSE: XOM) ($40 billion U.S. of profits).
Fitch gave the Saudi oil producer a credit rating of A+. It is the first ever credit rating for Aramco, and offers a glimpse into the company’s accounts, which have remained secret since its nationalization in the late 1970s.
Investors now have their first public look into the possible value of a once-in-a-generation deal for financial markets: Aramco’s proposed initial public offering, originally targeted for 2018 but now delayed until 2021.
The oil giant has mandated banks to hold a roadshow for dollar-denominated notes from April 1, potentially including tranches from three to 30 years. The company is raising debt in part to pay for the acquisition of a majority stake in domestic petro-chemical group Sabic, which is worth roughly $69 billion U.S. With Saudi Aramco generating the bulk of Saudi Arabia’s revenue, the accounts also provide sovereign bond investors with insights into the Kingdom’s financial health amid low oil prices.
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