Apr 13, 2018

Data reveals Aramco's huge profits

President and CEO of Saudi Aramco, Amin H. Nasser (R) delivers a speech during 2nd day opening session of 23rd World Energy Congress. Photo: Isa Terli/Anadolu Agency/Getty Images

Oil giant Saudi Aramco made nearly $34 billion in net income during the first half of 2017, making it the world's most profitable company, according to data viewed by Bloomberg News. Profits are also likely to be much higher this year thanks to increased oil prices.

Why it matters: The story reveals extremely closely held financial data as the state-owned Aramco readies what's likely to be the largest IPO ever, although the listing appears delayed until at least 2019 and is soaked with uncertainties.

One level deeper: According to Bloomberg, Aramco is nearly debt-free and "enjoys production costs running at a fraction of the industry standard." The company's per-barrel production costs are roughly $4, compared to around $20 for Exxon and Shell, according to Bloomberg, which notes the metric refers to oil, condensate and gas.

Yes, but: The story also explores data and various factors that may give investors pause.

  • They note that the government relies heavily on the revenues for social and military spending, which alongside cash flow and the kingdom's tax structure is "likely to limit the scope for dividend payments after a share sale."

Note: Aramco, in a statement to Bloomberg, called the information "inaccurate."

Go deeper

Coronavirus kills 2 Diamond Princess passengers and South Korea sees first death

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. U.S. numbers include Americans extracted from Princess Cruise ship.

Two elderly Diamond Princess passengers have been killed by the novel coronavirus — the first deaths confirmed among the more than 600 infected aboard the cruise ship. South Korea also announced its first death Thursday.

The big picture: COVID-19 has now killed more than 2,200 people and infected over 75,465 others, mostly in mainland China, where the National Health Commission announced 118 new deaths since Thursday.

Go deeperArrowUpdated 6 hours ago - Health

SoftBank to cut its stake to get T-Mobile's Sprint deal done

Illustration: Rebecca Zisser/Axios

T-Mobile and Sprint announced a revised merger agreement that will see SoftBank getting a smaller share of the combined company, while most shareholders will receive the previously agreed upon exchange rate. The companies said they hope to get the deal as early as April 1.

Why it matters: The amended deal reflects the decline in Sprint's business, while leaving most shareholders' stake intact and removing another hurdle to the deal's closure.