Aramco IPO preparations ‘progressing well’ but final decision lies with shareholder

Saudi Aramco's CEO Amin Nasser told a gathering of energy industry peers in Houston: ‘The IPO is progressing well. We became a joint stock company at the beginning of this year, so it is all progressing.’ (Reuters)
Updated 06 March 2018
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Aramco IPO preparations ‘progressing well’ but final decision lies with shareholder

HOUSTON: Preparations for the initial public offering (IPO) of Saudi Aramco are going well but final decisions on timing of the share sale and the venue for any listing other than the Tadawul in Riyadh have yet to be taken, according to the government-owned energy giant’s CEO.
Amin Nasser told a gathering of energy industry peers at the CERAWeek by IHS Markit conference in Houston: “The IPO is progressing well. We became a joint stock company at the beginning of this year, so it is all progressing.
“But the big questions that are being asked — where and when will we list in addition to the Tadawul — are decisions for the shareholder and it is up to the shareholder to decide those questions.”
The conference was shown a copy of the telegram sent 80 years ago this week to announced that oil had been discovered at Aramco’s original well in Dhahran, which marks the origin of the company.
Daniel Yergin, founder of CERA, said that within six months Saudi Arabia became the 26th biggest oil producer in the world. Today Aramco is the biggest oil exporter and has the biggest reserves of any oil company.
Nasser said Aramco regards gas as a “very significant growth area” and he was trying to “capture growth areas in different parts of the world.” There has been speculation Aramco might do gas deals with Russian and even that it would but shale assets in the US.
In his speech from the podium, Nasser said that the original geologists in 1938 “always seemed to know where to go next, and what it would take to get there,” adding that he was also clear about the future of the oil industry.
He said that global oil demand continued to remain healthy, and that major producers were continuing to “show restraint” in supplying oil. He added that there were “multiple downside geopolitical risks to supply.”
But he added: “I am not unduly concerned about the recent volatility and expect the market to strengthen once the seasonal factors begin to fade.”
On the future of the industry, which some analysts say is in long-term decline because of the development of alternative energy sources, he said: “I am not losing any sleep over ‘peak oil demand’ or ‘stranded resources’.”
Nasser also warned that the oil market faces “multiple downside political risks,” and needs $20 trillion of investment over the next 25 years — the size of the American economy.
“Today I want to be clear about what really lies ahead for our industry, and the actions we must take to secure that future,” he said.
“We must leave people in no doubt that misplaced notions of ‘peak oil demandʼ and ‘stranded resourcesʼ are direct threats to an orderly energy transition and energy security,” he said, adding: “Oil and gas will continue to play a major role in a world where all energy sources will be required for the foreseeable future.”
Nasser pointed to flaws in all the various alternatives that have been advocated as future energy sources.
“The hot topic in energy transition is the future role of oil in transport. At the heart of it is the light duty road passenger vehicles segment (cars) that accounts for about 20 percent of global oil demand today. Many wrongly believe that it is a simple matter of electric vehicles quickly and smoothly replacing the internal combustion engine,” he said.
The future for alternatives to the motor car and internal combustion engine was “far more complex,” he said.


Amazon workers strike as ‘Prime’ shopping frenzy hits

Updated 16 July 2019
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Amazon workers strike as ‘Prime’ shopping frenzy hits

  • The protesters waves signs with messages along the lines of “We’re human, not robots”
  • The strike was part of an ongoing effort to pressure the company on issues including job safety, equal opportunity in the workplace, and concrete action on issues including climate change

SAN FRANCISCO: Amazon workers walked out of a main distribution center in Minnesota on Monday, protesting for improved working conditions during the e-commerce titan’s major “Prime” shopping event.
Amazon workers picketed outside the facility, briefly delaying a few trucks and waving signs with messages along the lines of “We’re human, not robots.”
“We know Prime Day is a big day for Amazon, so we hope this strike will help executives understand how serious we are about wanting real change that will uplift the workers in Amazon’s warehouses,” striker Safiyo Mohamed said in a release.
“We create a lot of wealth for Amazon, but they aren’t treating us with the respect and dignity that we deserve.”
Organizers did not disclose the number of strikers, who said employees picketed for about an hour in intense heat before cutting the protest short due to the onset of heavy rain.
The strike was part of an ongoing effort to pressure the company on issues including job safety, equal opportunity in the workplace, and concrete action on issues including climate change, according to community organization Awood Center.
US Democratic presidential contenders Kamila Harris and Bernie Sanders were among those who expressed support for the strikers on Twitter.
“I stand in solidarity with the courageous Amazon workers engaging in a work stoppage against unconscionable working conditions in their warehouses,” Sanders said in a tweet.
“It is not too much to ask that a company owned by the wealthiest person in the world treat its workers with dignity and respect.”
Amazon employees also went on strike at seven locations in Germany, demanding better wages as the US online retail giant launched its two-day global shopping discount extravaganza called Prime Day.
Amazon had said in advance that the strike would not affect deliveries to customers.
Amazon has consistently defended work conditions, contending it is a leader when it comes to paying workers at least $15 hourly and providing benefits.
The company last week announced plans to offer job training to around one-third of its US workforce to help them gain skills to adapt to new technologies.
Amazon has been hustling to offer one-day deliver on a wider array of products as a perk for paying $119 annually to be a member of its “Prime” service, which includes streaming films and television shows.
The work action came on the opening day of a major “Prime” shopping event started in 2015.
Now in 17 countries, the event will span Monday and Tuesday, highlighted by a pre-recorded Taylor Swift video concert and promotions across a range of products and services from the e-commerce leader.
Prime Day sales for Amazon are expected to hit $5 billion this year, up from $3.2 billion in 2018, which at the time represented its biggest ever global shopping event, JP Morgan analyst Doug Anmuth says in a research note.