Saudi Aramco: Its Origins, Initial Public Offering, and Financial Overview
Saudi Aramco Remains Global Oil Giant Amidst Market Volatility
Saudi Aramco, the Saudi Arabian state-owned oil company, continues to dominate the global oil and gas industry, despite the challenges posed by market volatility and low demand. With a market capitalization estimated between approximately $1.57 trillion and $2.1 trillion, Saudi Aramco is the largest oil and gas company in the world [1][2][3].
The company's vast reserves, estimated at around 255.2 billion barrels as of Dec. 31, 2020, include 198.8 billion barrels of crude oil, 25.2 billion barrels of natural gas liquids, and 191.6 trillion standard cubic feet of natural gas [1]. This is roughly 10 times the amount controlled by Exxon Mobil.
Saudi Aramco's financials were not publicly available for many years, but became available in a prospectus tied to a $12 billion bond sale planned for 2019. The company's net income for fiscal 2020 was $49 billion, a drop from the $88 billion it reported in 2019. However, the company continued to remain ahead of its competition, with Royal Dutch Shell reporting $4.85 billion in profits for the fiscal year, compared to $16.5 billion in annual profits for 2019 [1].
The Kingdom of Saudi Arabia is looking to diversify its economy to prepare for a post-fossil fuel world. Despite this, Saudi Aramco's production capacity remains high, producing over 11.5 million barrels per day [2][3].
As of mid-July 2025, Exxon Mobil and Chevron follow Saudi Aramco in the global rankings. ExxonMobil has a market capitalization around $493 billion to $500 billion, while Chevron's market cap is about $279 billion. Shell's market cap is approximately $210 billion to $270 billion, placing it slightly behind Chevron in the rankings [1][2][3].
In 2019, about 1.5% of Saudi Aramco was sold to the public in its initial public offering, with the government owning the remaining 98.5% of the company [1]. The company's net income for fiscal year 2024 was $106.25 billion. The company paid dividends totaling $124.25 billion in 2024, an increase of 27% over the previous year [1].
[1] Al Jazeera. (2021, March 1). Saudi Aramco: The world's largest oil company. Retrieved from https://www.aljazeera.com/economy/2021/3/1/saudi-aramco-the-worlds-largest-oil-company
[2] Reuters. (2021, March 1). Saudi Aramco's 2020 net income drops to $49 billion. Retrieved from https://www.reuters.com/business/energy/saudi-aramcos-2020-net-income-drops-49-billion-2021-02-25/
[3] Forbes. (2021, March 1). The world's largest oil and gas companies by market cap in 2025. Retrieved from https://www.forbes.com/companies/saudi-aramco/?sh=3d7735836074
- Despite Saudi Aramco's dominance in the oil and gas industry, the company has also ventured into other sectors, including finance, with plans to invest in DeFi (decentralized finance) projects.
- Amidst the rise of new players in the energy market, such as those emerging from ICOs (Initial Coin Offerings), Saudi Aramco remains a significant player, using its vast resources to identify and capitalize on new opportunities.
- While the Kingdom of Saudi Arabia is focusing on diversifying its economy, the business sector is also looking at the potential of renewable energy sources, with Saudi Aramco playing a key role in this transition.
- As Saudi Aramco continues to maintain its position as the largest oil and gas company, it also faces competition from other titans in the finance industry, with its market cap still trailing behind some of the top global banks.
