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    2222   SA14TG012N13

SAUDI ARABIAN OIL COMPANY

(2222)
  Report
End-of-day quote. End-of-day quote Saudi Arabian Stock Exchange - 09/16
35.15 SAR   0.00%
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Saudi Arabian Oil : non-IFRS measures reconciliation and definitions

03/21/2021 | 01:03am EDT

Non-IFRS measures reconciliations and definitions for the year ended December 31, 2020

Aramco uses certain non-IFRS financial measures to make informed decisions about its financial position and operating performance or liquidity. These non-IFRS financial measures have been included below to facilitate a better understanding of Aramco's historical trends of operation and financial position.

Aramco uses non-IFRS financial measures as supplementary information to its IFRS based operating performance and financial position. The non-IFRS financial measures are not defined by, or presented in accordance with, IFRS. The non-IFRS financial measures are not measurements of Aramco's operating performance or liquidity under IFRS and should not be used instead of, or considered as alternatives to, any measures of performance or liquidity under IFRS. The non-IFRS financial measures relate to the reporting periods described below are not intended to be predictive of future results. In addition, other companies, including those in Aramco's industry, may calculate similarly titled non-IFRS financial measures differently from Aramco. Because companies do not necessarily calculate these non-IFRS financial measures in the same manner, Aramco's presentation of such non-IFRS financial measures may not be comparable to other similarly titled non-IFRS financial measures used by other companies.

Return on average capital employed (ROACE)

ROACE measures the efficiency of Aramco's utilization of capital. Aramco defines ROACE as net income before finance costs, net of income taxes and zakat, for a period as a percentage of average capital employed during that period. Average capital employed is the average of total borrowings plus total equity at the beginning and end of the applicable period. Aramco utilizes ROACE to evaluate management's performance and demonstrate to its shareholders that capital has been used effectively.

ROACE, calculated on a twelve-month rolling basis, was 13.2% in 2020, compared to 28.4% in 2019. This decrease was primarily attributable to lower net income, and to a lesser extent, higher borrowings as a result of the SABIC acquisition, the drawdown of a term loan facility and the issuance of Senior Unsecured Notes.

SAR

USD*

Twelve months

Twelve months

ended December 31

ended December 31

All amounts in millions unless otherwise stated

2020

2019

2020

2019

Net income

183,763

330,693

49,003

88,185

Finance costs, net of income taxes and zakat

5,282

3,013

1,409

804

Net income before finance costs, net of income taxes and zakat

189,045

333,706

50,412

88,989

As at period start:

Non-current borrowings

150,690

71,329

40,184

19,021

Current borrowings

24,895

29,989

6,639

7,997

Total equity

1,046,235

1,028,435

278,996

274,249

Capital employed

1,221,820

1,129,753

325,819

301,267

As at period end:

Non-current borrowings

436,920

150,690

116,512

40,184

Current borrowings

99,157

24,895

26,442

6,639

Total equity

1,101,094

1,046,235

293,625

278,996

Capital employed

1,637,171

1,221,820

436,579

325,819

Average capital employed

1,429,496

1,175,787

381,199

313,543

ROACE

13.2%

28.4%

13.2%

28.4%

*Supplementary information is converted at a fixed rate of U.S. dollar 1.00 = SAR 3.75 for convenience only.

Free cash flow

Aramco uses free cash flow to evaluate its cash available for financing activities, including dividend payments. Aramco defines free cash flow as net cash provided by operating activities less capital expenditures.

Free cash flow in 2020 was SAR 184,267 ($49,137), compared to SAR 293,647 ($78,305) in 2019, a decrease of SAR 109,380 ($29,168), or 37%. This was principally due to lower earnings in 2020, resulting from lower crude oil prices, lower crude oil volumes sold and weaker refining and chemicals margins, partly offset by a decrease in settlement of income, zakat and other taxes and lower capital expenditures following the implementation of capital spending optimization and efficiency programs during the year.

SAR

USD*

Year ended December 31

Year ended December 31

All amounts in millions unless otherwise stated

2020

2019

2020

2019

Net cash provided by operating activities

285,297

416,529

76,079

111,074

Capital expenditures

(101,030)

(122,882)

(26,942)

(32,769)

Free cash flow

184,267

293,647

49,137

78,305

*Supplementary information is converted at a fixed rate of U.S. dollar 1.00 = SAR 3.75 for convenience only.

Disclaimer

Saudi Aramco - Saudi Arabian Oil Company published this content on 21 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2021 06:02:00 UTC.


© Publicnow 2021
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Financials
Sales 2021 1 352 B 361 B 361 B
Net income 2021 367 B 97 943 M 97 943 M
Net Debt 2021 245 B 65 250 M 65 250 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%
Chart SAUDI ARABIAN OIL COMPANY
Duration : Period :
Saudi Arabian Oil Company Technical Analysis Chart | 2222 | SA14TG012N13 | MarketScreener
Technical analysis trends SAUDI ARABIAN OIL COMPANY
Short TermMid-TermLong Term
TrendsNeutralBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 17
Last Close Price 35,15 SAR
Average target price 35,21 SAR
Spread / Average Target 0,17%
EPS Revisions
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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