Reliance industries future plans
Mukesh Ambani led company Reliance industries limited announced today that it was selling a 20 percent stake in its oils and chemical business to Saudi Aramco the worlds most profitable company for an enterprise value of USD 75 billion.
Saudi Aramco is a natural gas and petroleum company based on Dhahran Saudi Arabia. It is one of the largest company in term of revenue and profits. Saudi Aramco is a state owned oil company of the kingdom of Saudi Arabia.Its the biggest oil company in the world,helping the country become the biggest exporter of crude oil. As Saudi Arabia government looks to take a part of the company public if that happens its set to be the largest IPO in the history of stock markets. with a net profit of about USD 47billion so far this year, Saudi Aramco has made more money than Apple and alphabet combined.
Reliance in its AGM today said that it intends to become a debt free company by 2021.
For Reliance, the cash from Aramco will help reduce debt that’s been pushed up by a headlong expansion into new sectors such as telecommunications.Aramco will buy a 20% stake in the company’s oil-to-chemicals business, including the 1.24 million-barrel-a-day Jamnagar refining complex on India’s west coast. For Reliance, a joint venture will guarantee a stable channel for crude supplies, while for Aramco it will open up opportunities to accelerate its investment plan into top gear in one of Asia's fastest growing energy markets.
With RIL’s 2021 vision in place, investors should expect major debt reduction moves through stake sale, asset Monetisation and value unlocking through listing or strategic sale of key business division. Apart from the Aramco deal, Reliance also announced a joint venture with BP PLC. this month, under which the European oil major would buy 49% of the Indian firm’s petroleum retailing business. Reliance would receive about 70 billion rupees under this deal.
Ambani final words were “With these initiatives, I have no doubt that your company will have one of the strongest balance sheets in the world.
Saudi Aramco is a natural gas and petroleum company based on Dhahran Saudi Arabia. It is one of the largest company in term of revenue and profits. Saudi Aramco is a state owned oil company of the kingdom of Saudi Arabia.Its the biggest oil company in the world,helping the country become the biggest exporter of crude oil. As Saudi Arabia government looks to take a part of the company public if that happens its set to be the largest IPO in the history of stock markets. with a net profit of about USD 47billion so far this year, Saudi Aramco has made more money than Apple and alphabet combined.
Reliance in its AGM today said that it intends to become a debt free company by 2021.
For Reliance, the cash from Aramco will help reduce debt that’s been pushed up by a headlong expansion into new sectors such as telecommunications.Aramco will buy a 20% stake in the company’s oil-to-chemicals business, including the 1.24 million-barrel-a-day Jamnagar refining complex on India’s west coast. For Reliance, a joint venture will guarantee a stable channel for crude supplies, while for Aramco it will open up opportunities to accelerate its investment plan into top gear in one of Asia's fastest growing energy markets.
With RIL’s 2021 vision in place, investors should expect major debt reduction moves through stake sale, asset Monetisation and value unlocking through listing or strategic sale of key business division. Apart from the Aramco deal, Reliance also announced a joint venture with BP PLC. this month, under which the European oil major would buy 49% of the Indian firm’s petroleum retailing business. Reliance would receive about 70 billion rupees under this deal.
Ambani final words were “With these initiatives, I have no doubt that your company will have one of the strongest balance sheets in the world.
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