01/09/2020
* Majid Al-Khalidi from Riyadh
The shares of oil companies are still under the influence of the Corona pandemic and the failure of "OPEC +" to reach an agreement to reduce production last March, which affected oil prices significantly at the time and plunged the shares of major oil companies, but despite this, Saudi Aramco's share performance was different. For the rest of the major global energy stocks.
According to the monitoring unit of the reports in Al-Eqtisadiah newspaper, based on the data of international companies, Saudi Aramco's share was able to erase all its market losses for the current year, among the top five international oil companies, as the stock closed yesterday at the highest level since the end of December 2019 at the level of 35.55 riyals, after the stock achieved its lowest level last March at 27 riyals.
Thus, Aramco’s share recorded market gains from its lowest level in March by about 32 percent, while at the end of the last session the share achieved gains since the beginning of the year by about 1 percent, while it is the closest competition from international oil companies below the level of last year by about 28 percent.
"Saudi Aramco" share in August achieved its best monthly performance since its listing on the Saudi market, as it ended the month with a gain of 7.7 percent, and the company's market value rose to 7.11 trillion riyals ($ 1.89 trillion).
Prince Abdulaziz bin Salman, Minister of Energy, announced the day before yesterday that Saudi Aramco had discovered two new oil and gas fields in the northern parts of the Kingdom, namely, Hadrat Al-Hajrah gas field in Al-Jawf region, and the Abraq Al-Toulol oil and gas field in Northern Borders Region.
At the end of the last session, Saudi Aramco shares were trading at a higher than the offering price of 32 riyals and an increase of 11 percent.
Aramco's profits declined during the second quarter by about 73 percent, as the company achieved a net profit of 24.62 billion riyals, and despite the decline in profits, the company announced the distribution of profits to its shareholders of 70.32 billion riyals, which is profits for the second quarter.
In addition, we find the shares of "Chevron", the closest competitor, "Aramco" below the level of last year and by about 28%, while the declines reached their severity in mid-March, exceeding 56%, while the majority of oil companies' shares recorded a mixed positive performance since the bottom of March thanks to the "OPEC agreement." + "Famous.
According to the monitoring, the outperformance of "Saudi Aramco" shares compared to international oil companies is due to several factors, the most important of which are stable financial returns to shareholders, as well as its superiority in financial performance, as most of its competitors achieved losses for the second consecutive quarter, while the second quarter of this year was Hardly on Aramco's competitors.
Investors see that any decline in "Saudi Aramco" shares will increase the dividend yield, which is about 3.95 percent according to the closing of the last session, as Aramco's guaranteed returns to 2024 amounting to 1.4 riyals per share are attractive.
And the shares of "Shell", "BP" and "Exxon Mobil" recorded a significant decline since the beginning of the year, declining by 49.1 percent, 44.1 percent, and 27.9 percent, respectively.
