Oil and power: the legacy of Saudi Aramco

Abstract

This thesis provides an in-depth evaluation of Saudi Aramco within the context of the evolving oil and gas industry. It delivers a detailed analysis of the company’s business performance, focusing on its operations across crude oil, natural gas, refined products, and chemical segments. Forecasts for these industries are presented, emphasizing Saudi Aramco’s strategic positioning and anticipated future market trends. The paper also assesses key industry and business risks associated with the company’s operations, alongside a thorough examination of its Environmental, Social, and Governance (ESG) policies and their outcomes. A valuation of Saudi Aramco was conducted using the Multiples approach, selecting comparable global oil and gas majors as proxies to determine firm value. Additionally, a scenario analysis was performed to evaluate the company’s valuation under varying market conditions, providing insights into its resilience amid shifting dynamics. The objective of this thesis is to estimate the fair value of Saudi Aramco in a rapidly changing energy market characterized by volatility and the ongoing transition toward greener energy solutions.