Fitch confirms Saudi Aramco’s rating at A

Rating agency Fitch confirmed oil giant Saudi Aramco’s rating to (A) and agency revised its prospects future for the company from stable to positive.

Fitch said rising oil prices will support the company and that expenses in Aramco’s annual capital account will increase to $ 40 billion – $ 50 billion in 2022, compared to $ 32 billion in 2021, in the wake of its efforts to increase oil production capacity of one million barrels of oil per day to 13 million. barrels per day by 2027 as requested by the government, in addition to other strategic initiatives, including gas production and green projects.

“We believe the company will remain resilient and continue to generate strong pre-dividend earnings as well in based on our moderate oil price assumptions, ”Fitch said.

“Saudi Aramco has the ambitious goal of paying at least $ 75 billion in annual dividends. We estimate that, based on our oil price assumptions, the in capital account and dividend payments should be largely covered by operating cash flows. We believe Saudi Aramco is resilient. To reconsider its dividend commitment in case of lower oil prices or expenses in capital account higher than we currently assume. “

Fitch pointed out that Saudi Aramco’s commercial profile is very strong and the cost is much lower than that of integrated international companies and some national oil companies, which is an important advantage. in times of volatility in the price of oil.

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