Latest news with #assetdivestment
Yahoo
6 days ago
- Business
- Yahoo
Aramco considers power asset sale to raise $4bn
Saudi Arabian oil company Aramco is considering the sale of up to five gas-fired power plants in a move that could potentially generate $4bn in revenue. The initiative forms part of a broader strategy aimed at freeing up capital and enhancing profitability for the state-owned enterprise, as reported by Reuters. These efforts are aligned with Saudi Arabia's push for Aramco to maximise its profits and increase contributions to government assets. Aramco has been exploring avenues including asset sales, efficiency improvements and cost reductions. The company's anticipated reduction in dividend payments by almost one-third in 2025 comes as lower oil prices impact earnings. Given that 81.5% of Aramco is directly owned by the state, these dividends, which encompass royalties and taxes, are crucial for government income. The scope of potential sales extends beyond just power plants; housing compounds and pipelines are also being considered for divestment according to two sources. Aramco currently owns full or partial stakes in 18 power facilities dedicated towards energising its gas operations and refineries, as stated in its 2024 financial report. Additional projects such as the Tanajib gas plant are expected, with operational commencement in 2025. These proposed asset disposals coincide with Crown Prince Mohammed bin Salman's ambitious domestic initiatives to diversify economic reliance away from petroleum amidst fluctuating crude prices' pressures. Despite accruing a substantial a $199bn windfall from Aramco in 2024, oil revenues constituting 62% of state receipts led to a budget deficit above $30bn in 2024 projections. "Aramco considers power asset sale to raise $4bn" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
Saudi Aramco considers power assets sale to raise billions
Besides the sale of the gas-fired plants, Aramco could divest assets such as housing compounds and pipelines. (AP pic) DUBAI : Saudi oil giant Aramco is looking to sell up to five gas-fired power plants, three sources with knowledge of the matter told Reuters, part of a broader effort to free up funds that could generate tens of billions of dollars. The potential sale of four or five gas-fired plants that power refineries could alone raise around US$4 billion as the Saudi government pushes Aramco to increase profits and payouts to the state, two of the sources said. Aramco, the world's most profitable company and the main source of Saudi state income, has been looking to sell some assets, improve efficiency and cut costs, Reuters has reported. The company will also slash dividend payouts by nearly a third this year as lower oil prices hit its income. The state, which directly owns 81.5% of Aramco, is heavily reliant on the payouts, which include royalties and taxes. Besides the sale of the gas-fired plants, the company could divest assets such as housing compounds and pipelines, two of the sources said. Port infrastructure assets could also be up for sale, one of them and a third person said. Aramco declined to comment on the potential asset sales and had no immediate comment on the amount of money the fundraising drive could yield. The Saudi government communications office did not respond to Reuters requests for comment. Reuters could not determine a timeline for the sale. The three sources spoke on condition of anonymity because the process is private. 'Local businesses like Saudi utility firms could be interested buyers,' one of the people said. Aramco fully or partly owned 18 power plants and related infrastructure locally supplying energy to its gas plants and refineries, according to its 2024 financial report. Other power plants are expected to come onstream soon. The Tanajib Gas Plant project is expected to start operations this year. The potential asset sales by Aramco coincide with Saudi Arabia Crown Prince Mohammed bin Salman's planned massive domestic projects to diversify the economy from oil while facing pressure from tumbling crude prices. Oil receipts made up 62% of state revenues last year with the Saudi budget showing a deficit of more than US$30 billion in 2024 despite a US$199 billion windfall from Aramco. Aramco sold US$5 billion of bonds in May and signalled more borrowing. The country is pouring hundreds of billions of dollars into projects including showpiece events like the Expo 2030 world fair and football's Fifa World Cup 2034. Aramco is also seeking to raise funds for infrastructure by bringing in investors, Reuters reported in May.
CTV News
04-07-2025
- Business
- CTV News
Saudi Aramco considers power assets sale to raise billions, sources say
DUBAI — Saudi oil giant Aramco is looking to sell up to five gas-fired power plants, three sources with knowledge of the matter told Reuters, part of a broader effort to free up funds that could generate tens of billions of dollars. The potential sale of four or five gas-fired plants that power refineries could alone raise around US$4 billion as the Saudi government pushes Aramco to increase profits and payouts to the state, two of the sources said. Aramco, the world's most profitable company and the main source of Saudi state income, has been looking to sell some assets, improve efficiency and cut costs, Reuters has reported. The company will also slash dividend payouts by nearly a third this year as lower oil prices hit its income. The state, which directly owns 81.5 per cent of Aramco, is heavily reliant on the payouts, which include royalties and taxes. Besides the sale of the gas-fired plants, the company could divest assets such as housing compounds and pipelines, two of the sources said. Port infrastructure assets could also be up for sale, one of them and a third person said. Aramco declined to comment on the potential asset sales and had no immediate comment on the amount of money the fundraising drive could yield. The Saudi government communications office did not respond to Reuters requests for comment. Reuters could not determine a timeline for the sale. The three sources spoke on condition of anonymity because the process is private. Local businesses like Saudi utility firms could be interested buyers, one of the people said. Aramco fully or partly owned 18 power plants and related infrastructure locally supplying energy to its gas plants and refineries, according to its 2024 financial report. Other power plants are expected to come onstream soon. The Tanajib Gas Plant project is expected to start operations this year. The potential asset sales by Aramco coincide with Saudi Arabia Crown Prince Mohammed bin Salman's planned massive domestic projects to diversify the economy from oil while facing pressure from tumbling crude prices. Oil receipts made up 62 per cent of state revenues last year with the Saudi budget showing a deficit of more than $30 billion in 2024 despite a $199 billion windfall from Aramco. Aramco sold $5 billion of bonds in May and signaled more borrowing. The country is pouring hundreds of billions of dollars into projects including showpiece events like the Expo 2030 world fair and soccer's FIFA World Cup 2034. Aramco is also seeking to raise funds for infrastructure by bringing in investors, Reuters reported in May. (Reporting by Federico Maccioni and Yousef Saba in Dubai; Editing by Anousha Sakoui, Dmitry Zhdannikov and Emelia Sithole-Matarise)
Reuters
04-07-2025
- Business
- Reuters
Exclusive: Saudi Aramco considers power assets sale to raise billions, sources say
DUBAI, July 4 (Reuters) - Saudi oil giant Aramco ( opens new tab is looking to sell up to five gas-fired power plants, three sources with knowledge of the matter told Reuters, part of a broader effort to free up funds that could generate tens of billions of dollars. The potential sale of four or five gas-fired plants that power refineries could alone raise around $4 billion as the Saudi government pushes Aramco to increase profits and payouts to the state, two of the sources said. Aramco, the world's most profitable company and the main source of Saudi state income, has been looking to sell some assets, improve efficiency and cut costs, Reuters has reported. The company will also slash dividend payouts by nearly a third this year as lower oil prices hit its income. The state, which directly owns 81.5% of Aramco, is heavily reliant on the payouts, which include royalties and taxes. Besides the sale of the gas-fired plants, the company could divest assets such as housing compounds and pipelines, two of the sources said. Port infrastructure assets could also be up for sale, one of them and a third person said. Aramco declined to comment on the potential asset sales and had no immediate comment on the amount of money the fundraising drive could yield. The Saudi government communications office did not respond to Reuters requests for comment. Reuters could not determine a timeline for the sale. The three sources spoke on condition of anonymity because the process is private. Local businesses like Saudi utility firms could be interested buyers, one of the people said. Aramco fully or partly owned 18 power plants and related infrastructure locally supplying energy to its gas plants and refineries, according to its 2024 financial report. Other power plants are expected to come onstream soon. The Tanajib Gas Plant project is expected to start operations this year. The potential asset sales by Aramco coincide with Saudi Arabia Crown Prince Mohammed bin Salman's planned massive domestic projects to diversify the economy from oil while facing pressure from tumbling crude prices. Oil receipts made up 62% of state revenues last year with the Saudi budget showing a deficit of more than $30 billion in 2024 despite a $199 billion windfall from Aramco. Aramco sold $5 billion of bonds in May and signalled more borrowing. The country is pouring hundreds of billions of dollars into projects including showpiece events like the Expo 2030 world fair and soccer's FIFA World Cup 2034. Aramco is also seeking to raise funds for infrastructure by bringing in investors, Reuters reported in May.
Yahoo
04-07-2025
- Business
- Yahoo
Exclusive-Saudi Aramco considers power assets sale to raise billions, sources say
By Federico Maccioni and Yousef Saba DUBAI (Reuters) -Saudi oil giant Aramco is looking to sell up to five gas-fired power plants, three sources with knowledge of the matter told Reuters, part of a broader effort to free up funds that could generate tens of billions of dollars. The potential sale of four or five gas-fired plants that power refineries could alone raise around $4 billion as the Saudi government pushes Aramco to increase profits and payouts to the state, two of the sources said. Aramco, the world's most profitable company and the main source of Saudi state income, has been looking to sell some assets, improve efficiency and cut costs, Reuters has reported. The company will also slash dividend payouts by nearly a third this year as lower oil prices hit its income. The state, which directly owns 81.5% of Aramco, is heavily reliant on the payouts, which include royalties and taxes. Besides the sale of the gas-fired plants, the company could divest assets such as housing compounds and pipelines, two of the sources said. Port infrastructure assets could also be up for sale, one of them and a third person said. Aramco declined to comment on the potential asset sales and had no immediate comment on the amount of money the fundraising drive could yield. The Saudi government communications office did not respond to Reuters requests for comment. Reuters could not determine a timeline for the sale. The three sources spoke on condition of anonymity because the process is private. Local businesses like Saudi utility firms could be interested buyers, one of the people said. Aramco fully or partly owned 18 power plants and related infrastructure locally supplying energy to its gas plants and refineries, according to its 2024 financial report. Other power plants are expected to come onstream soon. The Tanajib Gas Plant project is expected to start operations this year. The potential asset sales by Aramco coincide with Saudi Arabia Crown Prince Mohammed bin Salman's planned massive domestic projects to diversify the economy from oil while facing pressure from tumbling crude prices. Oil receipts made up 62% of state revenues last year with the Saudi budget showing a deficit of more than $30 billion in 2024 despite a $199 billion windfall from Aramco. Aramco sold $5 billion of bonds in May and signalled more borrowing. The country is pouring hundreds of billions of dollars into projects including showpiece events like the Expo 2030 world fair and soccer's FIFA World Cup 2034. Aramco is also seeking to raise funds for infrastructure by bringing in investors, Reuters reported in May. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
