What do you have to say about Saudi Government to might be selling off a bit of Saudi Aramco onto the stock market? There’s good and bad reasons as to why they might want to do that. It’s not just that it would be more valuable than Apple or Google; it’s that it might be worth some 20x Exxon.
If Oil companies are estimated by the worth of their reserves, then obviously the answer could lead to YES. If not then answer is NO. However, in that case the financial market position is still unclear at the moment. Keeping that scenario in sight, Saudi Aramco reserved would be fully exploited in that far future – Just as much of Exxon’s reserve base does not feature in current day valuations. Also not exactly do we forecast of what is in reserve for both Google and Apple in year 2036 or year 2046 – also the most minimal impact on their present day valuations too.
On keeping in view Aramco; it certainly makes very high profits simply because their cost of production is not at hike. On the other hand, if Saudi Arabia has better investments to make – so far there are positive predictions – then it could indeed be sensible to sell some of Aramco’s stock and proceed on with further investments.
On a similar notice, selling off capital just to meet current running losses is never a bullish yielder; however, if it’s to provide a slug of capital to finance the necessary rejuvenation of the Saudi economy, away from that dependence upon oil, then the results might come into country’s financial favor.
