© Reuters.
Investing.com – The oil giant Saudi Aramco (TADAWUL:) closed 2023 with a profit of 121.3 billion dollars, ranking first place in the world for profits among listed companies.
To understand how extraordinary this result is, just think that by putting together 4 companies among the “Magnificent 7 of Wall Street”, specifically Meta (39 billion), Amazon (NASDAQ:) (30 billion), NVIDIA (30 billion) e Tesla (NASDAQ: (15 billion), this brings a total of 114 billion in profits over the past year, 7 billion less than the Saudi company alone. Apple (NASDAQ:) and the Berkshire Hathaway of Warren Buffet have raised “only” 97 billion in 2023, Microsoft (NASDAQ:) 72.
However, for Saudi Aramco this is a disappointing figure, given that in 2022 it had reported nearly $161 billion in profitthe greatest result ever achieved by a company listed on the stock exchange.
The drop is due to the trend in oil prices which OPEC+, led by Saudi Arabia, is trying to push up with production cuts.
The chase for the magnificence of Wall Street
In any case, beyond the volatility of the sector, the Arab company has proven to be the undisputed queen of profits in the last 2 years. But as we know, if economic balance sheets look to the past, markets look to the future, which is why one wonders: How much are Saudi Aramco shares worth?
On the stock market the roles are reversed and the Wall Street giants once again reign supreme, with Microsoft (3,159 billion dollars), Apple (2,671 billion) and Nvidia (2,164 billion) occupying the first three places in terms of market cap as of March 15th. But Saudi Aramco comes next, with a total value of $2.017 billionthe fourth and last listed company to exceed 2 trillion market cap.
Fair Value e target price di Saudi Aramco
The company’s shares closed 2.5% lower at $8.33 on Friday. Since its listing at the end of 2019, the stock has grown by approximately 27%. and, based on Fair Value di InvestingProwhich summarizes 15 recognized financial models adapted to the specific characteristics of Saudi Aramco, has the basis for further growth, with a consistent price set at $9.30 up 11.6%.
Even the 13s analysts interviewed by InvestingPro, predict a possible bullish trend, estimating the target price at $9.02 per shareapproximately 8.3% more than the current value.
Risk profile and dividend policy
Looking then at the risk profile, Saudi Aramco has a level of financial health very solid, with a score of 4 are 5.
Finally, regarding the dividend policyDespite profits being lower this year, Saudi Aramco still decided to reward its shareholders by bringing total dividends for 2023 to $97.8 billion, up 30%.
Plans for the future: more gas is needed
As for the future, Amin H. Nasser, president and CEO of Saudi Aramco, has no doubts: “gas will be a fundamental part of the global energy mix for many decades to come”, he declared on the occasion of the publication of the 2023 accounts. What if last year 62% of revenue came from crude oil, we can expect the balance to change. While on the one hand the directive aimed at maintaining maximum sustainable capacity at 12 million barrels per day will slow down investments in the oil sector, on the other the company is pushing on the gas.
The goal is to increase gas production by more than 60% by 2030, compared to 2021 levels. And it is going precisely in this direction the agreementannounced by Saudi Aramco last September, to acquire a strategic minority stake in the American MidOcean Energy for 500 million dollars.
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