Saudi Aramco chief Amin Nasser sets out roadmap for IPO in 2021

The head of Saudi Aramco, pictured here at Davos 2017, has laid out a roadmap leading to the sale of shares in the world’s biggest oil company in 2021. (WEF)
Updated 27 January 2019

Saudi Aramco chief Amin Nasser sets out roadmap for IPO in 2021

  • ‘The IPO is going to happen. There is no doubt the commitment is there,’ CEO tells Arab News
  • Aramco considering a major acquisition in the global gas industry

DAVOS: The head of Saudi Aramco has laid out a roadmap leading to the sale of shares in the world’s biggest oil company in 2021.
“It’s going to happen,” president and chief executive Amin Nasser told Arab News. “There is no doubt the commitment is there, and it was also further confirmed by Crown Prince Mohammed bin Salman and by the Minister of Energy Khalid Al-Falih.”
The initial public offering — potentially the biggest stock-market flotation in history — will require careful coordination over the next two years, he said.

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FULL ARAB NEWS INTERVIEW WITH AMIN NASSER HERE

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The first stage is to complete the acquisition of SABIC, the Kingdom’s industrial giant, to transform Aramco into a major player in the global petrochemicals industry.
“That will take almost until the end of 2019, or maybe a little bit more; we don’t know because you need approval from a lot of countries where SABIC has major operations,” Nasser said.
“After that you need a minimum of one year to … show what is the impact on our balance sheet — because the investors will want to see. Then you can go to the market.”
Aramco is also considering a major acquisition in the global gas industry, with potential targets in the US, Russia and Australia, Nasser revealed.
“The team is identifying opportunities and we’re at the stage of reviewing them in detail before we announce anything.”


Gulf Marine CEO quits after review sparks profit warning

Updated 31 min 20 sec ago

Gulf Marine CEO quits after review sparks profit warning

  • Tensions in the Arabian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence

DUBAI: Gulf Marine Services said on Wednesday Chief Executive Officer Duncan Anderson has resigned as the oilfield industry contractor warned a reassessment of its ships and contracts showed profit would fall this year, kicking its shares 12 percent down.

The Abu Dhabi-based offshore services specialist said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core earnings of between $45 million and $48 million, below $58 million that it reported last year.

A source familiar with the matter told Reuters that Anderson, who has served as CEO for 12 years, was asked to step down. Anderson could not be reached for comment.

The company, which in the past predominantly operated in the UAE, expanded operations and deployed large vessels in the North Sea and Saudi Arabia nine years ago and listed its shares in London in 2014.

Tensions in the Arabian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence.

The North Sea has seen a revival in production in recent years due to new fields coming on line and improved performance by operators following the 2014 oil price collapse.

Still, the basin’s production is expected to decline over the next decade, according to Britain’s Oil and Gas Authority.

“(The CFO’s) review has coincided with a pause in renewables-related self-propelled self-elevating support vessels activity in the North Sea, which will impact several of the higher day-rate E-Class vessels,” Investec wrote in a note.

Gulf Marine appointed industry veteran Kersley as chief financial officer in late May as it sought to halt a slide which has seen the company’s shares fall nearly 80 percent last year and another 23 percent so far this year.

The company said market conditions remained challenging and that it was still in talks with its financial advisors regarding a new capital structure.

“Management, the new board and the group’s advisors, have been in negotiation with the group’s banks on resetting its capital structure and progress has been made,” it said in a statement.

Last year, Gulf Marine said contracts were delayed into 2019 as the company was seen to be in breach of certain banking covenants at the end of 2018.

The company said it was still in talks with its banks and individual lenders with hopes of getting a waiver or an agreement to amend the concerned covenants.