Aramco Earnings (Q2 FY22)

 Aramco Earnings and Opinion:


Aramco is a company in the Energy sector and operates in the Oil and Gas Integrated sector. The company operates as an Oil and Integrated Gas company in the Kingdom of Saudi Arabia and provides internationally. Aramco was founded in 1933 and is currently headquartered in Dhahran, Saudi Arabia. The company was first available to trade in December of 2019.

Aramco Earnings Results:

  • Net Income of $48.4B beating expectations of $46B
  • Operating Cash Flow of $44B missing expectations of $45.82B
  • Free Cash Flow of $34.6B beating expectations of $34B
  • Dividends distributed of $18.8B missing expectations of $19.33B
Opinion:
Aramco reported a mixed earnings report today and with the delayed price quote due to the company being in a foreign exchange, we have not seen the effect of the earnings report. The company is definitely a generator of cash, that's for certain. With the company being one of the leading oil producers, it's no surprise to see the numbers come in this high. From personal experience, I try to stay out of foreign markets, just from the possibility of them being delisted. However, this could be one of the safest bets in the foreign market. I do not see oil and gas subsiding anytime soon, so it could worth your penny to get into this cash cow. As far as valuations go, it seems as if the company is in line with industry averages. The only thing I was concerned with was the dividends distributed and the production levels coming in lower than expected. That is probably apprehended with the war and conflict happening closer to the area of production. I will further look into this as future earnings reports come out. I think a lot of volatility lies in this stock, as with many in this industry have. I would stay away from this stock, unless you are really into cash cows and want to get a decent return on dividends. 


*Information from Yahoo Finance and Consensus Guru

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