Was the investment in Aramco -profit after 5 years of insertion?

Five years after the inclusion of Saudi Aramco in the stock market, a question arises on the feasibility of investing in the company’s shares during the initial offer, and whether the arrow of the arrow has made real profits for shareholders. To answer this, it is necessary to consider the performance of the arrow, the market value and the cash distributions during this period. The arrow performance and change in market value when the “Aramco” was admitted to the Saudi stock market in December 2019, with a market value of 6.4 trillion rows, and the stock was priced at 32 rows, with the total number of 200 billion shares. With the subsequent adjustments and capital increases, the average rate of the share settled at 26.4 Riyals. Currently, the market value of the company is estimated at 6.05 trillion Riyals, which reflects a 6% decline compared to the initial offer price. On the other hand, the total number of shares has risen to 240 billion shares, while Aramco’s share is currently being traded at 25.1 Riyals. The total returns for investors, despite the minor decline in the share price, were characterized by a generous cash policy, which has spread 1,686 trillion Riyals to shareholders since the offer, equivalent to 7 Riyals per share. By calculating the total returns, we find that the rate of the average price from 26.4 Riyals to 25.1 Riyals reflects a loss of 5%, but the distributed profits compensate for this decline, which produced the actual return on investment within five years. Future expectations and the attraction of the arrow, Thamer Al -SAEED, head of asset management at the “Nazana Financial” business, sees that “Aramco” shares maintain attraction, especially for investors focusing on sustainable cash returns. This is due to the generous distribution policy of the business, which is expected to grow with its expansion in the field of traditional and new energy. This strategy increases the company’s ability to achieve stable profits in the long run, which supports the share of the share in the governor of investors interested in fixed income. Although the market is influenced by multiple factors, the estimates of experience houses indicate on the average target price of 29.98 Riyals per share, according to Bloomberg, which reflects the confidence of analysts in the future prospects. Al -SAEED notes that the limited fluctuation in the share price compared to many other stocks increases its position as an investment option for those trying to combine stability and rewarding returns. The most important role played by the share in the market also makes it an influential factor in the general direction of the movement of trading, which can improve the continued attraction for investors. Saleh Yilmaz, an oil analyst at Bloomberg Intelligence, is of the opinion that the continuation of the need for production cuts within the “OPEC+” coalition of Aramco production in less than 9 million barrels per day, a big difference from its maximum capacity of 11 million barrels per day. The prospects for the price of oil were again approved by oil prices today, with the price of Brent -Ru (May contracts) up to below $ 70 a barrel and the decline in the Western Texas ruol (April contracts) to $ 66.25 a barrel. As far as oil prices are concerned, Goldman Sachs has reduced its expectations for Brent -Ru price to a range of $ 65 to $ 80 a barrel. Dan Streffen, head of the bank’s commodity research, said they no longer consider $ 70 as the minimum prices, despite their expectation that Brent is left in the coming months. The overview comes after similar discounts from “Morgan Stanley” and “Bank of America”, which expects prices to stabilize in the higher range than $ 60 during the second half of the year, while “City Group” and “JP Morgan” suggested that they end the year at the lowest or middle range of $ 60. Even large oil dealers such as “Vitol” and “Gunfor” have reduced their expectations.