Tuesday 19 May 2020

Aramco Is First Oil Major to Regain Pre-Price-War Stock Level - Bloomberg

Aramco Is First Oil Major to Regain Pre-Price-War Stock Level - Bloomberg:

Saudi Aramco is the first major global oil producer to see its stock recover to the level it traded at before the price war between Russia and Saudi Arabia.

Aramco climbed 3.1% in Riyadh on Tuesday, advancing for a record sixth day alongside an extended increase in the price of crude. The stock has gained each session since the company announced it would retain dividend payouts, despite a drop in first-quarter profit.


Aramco’s recovery has been achieved on much smaller share volumes than its international counterparts, with less than 2% of the Saudi company’s stock available for trading. An average of about $35 million worth of Aramco shares changed hands each session last week, rising to $100 million on Monday. That compares with yesterday’s Exxon Mobil Corp. share turnover of $1.4 billion.

Much of Aramco’s stock sold during its initial public offering in December went to locals, who stand to receive bonus shares if they maintain their holdings for six months. The shares are now 20% higher than this year’s lowest close on March 16.

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