Saudi oilfield attacks 'had zero impact on economy,' says finance minister

Marco Green
September 20, 2019

Attacks that slashed half of Saudi Arabia's oil output had "zero" impact on the kingdom's revenue and won't affect economic growth, finance minister Mohammed Al-Jadaan said.

Aramco's primary listing will be on Tadawul, the local stock market, in Riyadh, but the government is still considering a secondary listing overseas, he said.

Rumayyan told a news conference that the Aramco IPO would "continue as it is" despite weekend attacks on the company's oil facilities.

"The train has left the station". The IPO could be the largest ever, with the company's valuation poised to top Dollars one trillion.

The attacks make it unlikely that the listing on the Saudi stock exchange will happen in the coming months, sources told the news agency. The domestic flotation is the first step of a targeted 5% sale.

"It would seem logical that Aramco's IPO will be delayed while the damage is assessed but beyond this we would expect that the risk premium that investors will require should the IPO go ahead will now be higher", said Piers Hillier, chief investment officer at Royal London Asset Management. India is the third-largest oil importing country in the world. Lazard Ltd. and Moelis are also advising Aramco, people with knowledge of the matter have said.

Aramco Trading Company (ATC), the trading arm of Saudi Aramco, is making enquiries to buy diesel for prompt delivery, two of the trade sources said.

The Saudi stock market was also up 0.4% in afternoon trade on Wednesday and Saudi dollar-denominated bonds also recovered on the global market after falling on Monday.

The U.K. and the United States administrations have agreed on a "unified response" to last Saturday's attacks on the Aramco oil facilities in Saudi Arabia, a British government statement said Wednesday.

Aramco has reportedly hired Goldman Sachs Group, Morgan Stanley, and JPMorgan Chase & Co as underwriters for the deal.

Other reports by Click Lancashire

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