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IIRC their revenue is about 4x Apple's.
by saryant 12y ago
IIRC their revenue is about 4x Apple's.
- deleted 12y ago[deleted]
- rgbrenner 12y agoactually, they averaged 95b/qtr last year vs apple's 75b last quarter. They have $36 trillion in assets (consisting of all of SAs oil and gas reserves + the state refining company that was merged in the 90s). Considering the drop in oil prices lately, it's quite possible Apple's revenue exceeded Aramco's last quarter
- giarc 12y agoWikipedia tells me the company is valued somewhere between 1 and 7 trillion but has $30+ trillion is assets. I'm not a business person, shouldn't it be valued at more simply by the fact that is has a huge amount of assets?
- zrail 12y agoI'm not an oil or gas expert, but the low valuation vs assets might be because many of those assets are underground in hard to reach places. Reserves may be proven but not economically viable to access at the current price of oil, for example.
- rgbrenner 12y agoSeems about right... Exxon has about 1/12th the proven reserves and (taking the 7t est for aramco) 1/20th the market cap (380b) http://news.exxonmobil.com/press-release/exxon-mobil-corporation-announces-2013-reserves-replacement-totaled-103-percent http://news.exxonmobil.com/press-release/exxon-mobil-corpora...
- nandemo 12y agoA company's valuation is roughly the estimated sum of all its future profits until it shutters or goes bankrupt. Most of those 30 trillion assets are deep into the ground, and cannot be turned into profits for free. If you need to spend (say) 2 dollars for every 3 dollars of worth of oil you extract, then the value of the company is already <$10T. The operating expenses can be pretty high. There's also taxes and interest. Also, we don't know what the price of oil will be in 5 or 10 years, so we have to price in that uncertainty too.