Saudi Aramco has reported revenue of $111 billion USD — less than 2% below last year.
👉 Background: Saudi Aramco is the state-owned oil company which is 97% owned by the Kingdom of Saudi Arabia. It's the world’s sixth-most valuable company in the world and the dividends are used to invest in the future of Saudi Arabia.
👉 What happened: Now, Saudi Aramco has reported revenue of $111 billion USD — less than 2% below last year. On top of this, its profits were down 15% for the quarter compared to the same time last year.
👉 What else: The main driver of their profit drop was the decline over the past 12 months. And, being the biggest in the world, Saudi Aramco is a bellwether for the global oil industry.
💡Bellwether stocks are the stocks that are normally used to gauge the general performance of an industry, market or the overall economy. These companies become a pretty good indicator of whether industry is thriving or struggling.
💡Saudi Aramco produces around 1 in every 8 barrels of global crude oil so it’s fair to say that its performance is a pretty good indicator into the rest of the market.
💡Some of the biggest companies are also bellwethers in their own industries:
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