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    2222   SA14TG012N13

SAUDI ARABIAN OIL COMPANY

(2222)
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End-of-day quote. End-of-day quote Saudi Arabian Stock Exchange - 09/16
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Saudi Arabian Oil : Aramco signs $12.4 billion infrastructure investment deal with EIG-led consortium

04/09/2021 | 04:59pm EDT
  • One of the world's largest energy infrastructure deals
  • Newly-formed entity, Aramco Oil Pipelines Company, to lease usage rights of Aramco's stabilized crude oil pipeline network over 25-year period
  • Transaction reflects ongoing progress in Aramco's portfolio optimization program, which aims to unlock value and maximize shareholder returns
  • Significant injection of foreign capital reinforces Aramco's leading position in the international energy arena and Saudi Arabia's appeal to prominent institutional investors globally

Aramco has signed a deal with a consortium led by EIG Global Energy Partners ('EIG'), one of the world's leading energy infrastructure investors, to optimize its assets through a lease-and-lease-back agreement involving its stabilized crude oil pipeline network.

Upon closing, Aramco will receive upfront proceeds of around $12.4 billion, further strengthening its balance sheet through one of the largest energy infrastructure deals globally. The transaction represents a continuation of Aramco's strategy to unlock the potential of its asset base and maximize value for its shareholders. It also reinforces Aramco's role as a catalyst for attracting significant foreign investment into the Kingdom.

As part of the transaction, a newly-formed Aramco subsidiary, Aramco Oil Pipelines Company, will lease usage rights in Aramco's stabilized crude oil pipelines network for a 25-year period. In return, Aramco Oil Pipelines Company will receive a tariff payable by Aramco for the stabilized crude oil that flows through the network, backed by minimum volume commitments. Aramco will hold a 51% majority stake in the new company and the EIG-led consortium will hold a 49% stake. Aramco will continue to retain full ownership and operational control of its stabilized crude oil pipeline network. The transaction will not impose any restrictions on Aramco's actual crude oil production volumes that are subject to production decisions issued by the Kingdom.

Aramco President & CEO, Amin H. Nasser, said: 'This landmark transaction defines the way forward for our portfolio optimization program. We are capitalizing on new opportunities that also align strategically with the Kingdom's recently-launched Shareek program. Aramco's strong capital structure will be further enhanced with this transaction, which in turn will help maximize returns for our shareholders. Additionally, our long-term partners in this venture will benefit from investment in one of the world's most robust energy infrastructures. Moving forward, we will continue to explore opportunities that underpin our strategy of long-term value creation.'

Abdulaziz M. Al Gudaimi, Aramco Senior Vice President of Corporate Development, said: 'In addition to strengthening our balance sheet, this deal sets a new benchmark for infrastructure transactions both regionally and internationally. It is a vote of confidence in our long-term outlook by EIG and other heavyweights in the investment world and reflects the significant progress we are making in our portfolio optimization program. This transaction unlocks value from our assets and strengthen Aramco's resilience, agility and ability to respond to changing market dynamics.'

R. Blair Thomas, EIG's Chairman & CEO, said: 'We are honored to partner with Aramco, an undisputed industry leader, on this landmark transaction. Aramco's oil pipeline network is a marquee global infrastructure asset. We look forward to investing in this infrastructure which is critical to the global economy, and to driving value for our institutional investors worldwide.'

The long-term investment by EIG and other institutional investors underscores the compelling investment opportunity represented by Aramco's globally-significant pipeline assets, the Company's long-term outlook and the attractiveness of the Kingdom of Saudi Arabia as a desirable investment destination for international investors. The transaction is expected to close as soon as practicable, subject to customary closing conditions, including any required merger control and related approvals.

Disclaimer

Saudi Aramco - Saudi Arabian Oil Company published this content on 09 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 April 2021 20:58:03 UTC.


© Publicnow 2021
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Analyst Recommendations on SAUDI ARABIAN OIL COMPANY
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Financials
Sales 2021 1 352 B 361 B 361 B
Net income 2021 367 B 97 938 M 97 938 M
Net Debt 2021 245 B 65 247 M 65 247 M
P/E ratio 2021 19,2x
Yield 2021 4,02%
Capitalization 7 026 B 1 874 B 1 874 B
EV / Sales 2021 5,38x
EV / Sales 2022 4,94x
Nbr of Employees 79 000
Free-Float 1,76%
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Saudi Arabian Oil Company Technical Analysis Chart | 2222 | SA14TG012N13 | MarketScreener
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Income Statement Evolution
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Mean consensus HOLD
Number of Analysts 17
Last Close Price 35,15 SAR
Average target price 35,21 SAR
Spread / Average Target 0,17%
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Managers and Directors
Amin bin Hasan Al-Nasser President, CEO & Executive Director
Khalid Hashim Al-Dabbagh Director, SVP-Finance, Strategy & Development
Yasir bin Othman Al-Rumayyan Chairman
Ahmad Abdul Rahman Al-Sa'adi Senior Vice President-Technical Services
Ziad Thamer Al-Murshed Vice President-International Operations
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