2019-04-13 14:28:00 Sat ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
Saudi Aramco unveils the financial secrets of the most profitable corporation in the world. In its recent public bond issuance prospectus, Aramco offers the first official view of its financial affairs. The bottomline is about $111 billion for the fiscal year 2018-2019. This annual profit is more than the sum of net profits from Apple and Alphabet. As the sole controlling shareholder of the oil company Aramco, the Saudi Arabia government receives $56 billion oil production royalties, $102 billion income taxes, and $107 billion cash dividends from Aramco in the fiscal year 2018-2019. This capital allocation is equivalent to 2.5+ times the $100 billion SoftBank Vision Fund in Japan.
If the international stock investment community pays the equivalent market value of 16-18 times the $100+ billion net profit per annum, the forthcoming Aramco IPO can reach the astronomical stock market capitalization of almost $2 trillion. Saudi Arabia government can use the cash proceeds to buy equity stakes in multinational tech companies for better diversification and national security. In the grand scheme, this stock investment strategy brings forward the future cash flows from Aramco for the middle-east government to diversify outside the energy sector.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-03-06 11:35:00 Tuesday ET
The Trump team blocks Broadcom's bid for Qualcomm due to national economic security concerns and 5G telecom network issues. Broadcom makes microchips fo
2018-09-07 07:33:00 Friday ET
The Economist re-evaluates the realistic scenario that the world has learned few lessons of the global financial crisis from 2008 to 2009 over the past deca
2023-08-07 12:29:00 Monday ET
Oxford macro professor Stephen Nickell and his co-authors delve into the trade-off between inflation and unemployment in the dual mandate of price stability
2022-09-25 09:34:00 Sunday ET
Main reasons for share repurchases Temporary market undervaluation often induces corporate incumbents to initiate a share repurchase program to boost the
2020-11-01 11:21:00 Sunday ET
Artificial intelligence continues to push boundaries for several tech titans to sustain their central disruptive innovations, competitive moats, and first-m
2018-08-13 12:39:00 Monday ET
White House chief economic adviser Larry Kudlow points out that the recent U.S. dollar strength shows a clear sign of investor confidence and optimism. Gree