Aramco dwarfs global majors in profit

DUBAI: Oil giant Saudi Aramco revealed on Monday it made the world's biggest corporate profit last year, opening its secretive accounts for the first time as it prepares to raise funds from investors.

International ratings agencies Fitch and Moody's got rare access to Aramco's accounts which show the firm posting billions in profits.

It comes as Aramco prepares to sell bonds on the international market to help finance the purchase of a 70-percent stake in Saudi petrochemical behemoth SABIC for $69.1 billion, effectively merging the kingdom's two largest companies.

The huge deal gives Crown Prince Mohammed bin Salman's ambitious reform programme aimed at diversifying the economy a massive cash boost.

Moody's Investors Service said Aramco posted a net profit of $111.1 billion in 2018-- far higher than the combined net earnings of the five international oil majors--and generated $359.9 billion in revenues.

Last year, US oil giants Chevron and Exxon Mobil, Britain's BP, Anglo-Dutch rival Royal Dutch Shell and France's Total together posted nearly $80 billion.

Aramco also dethroned Apple as the world's most profitable firm.

Last year the US tech giant posted nearly $50 billion in net profits.

Fitch Ratings, which also saw the accounts, said Aramco reported $224 billion in earnings before tax and depreciation, while maintaining low debt levels.

However, both Fitch and Moody's gave state-owned Aramco a credit rating of just A+ and A1 respectively, with a stable outlook, since the majority of its revenue is taken by the government to finance its ever-increasing spending.

Based on its finances, massive hydrocarbon reserves and low production cost, its stand-alone rating would have been a top AA+ on an equal footing with international oil companies, Fitch said.