Logo of Saudi Aramco
Fitch Ratings said in a report issued today it has revised Saudi Arabian Oil Co.'s (Saudi Aramco) outlook to 'Stable' from 'Negative', while affirming the company's long-term issuer default rating (IDR) at 'A'.
The revision of the company's outlook is driven by a similar action on the sovereign, said Fitch, adding that the company's IDR is constrained at that of its majority shareholder Saudi Arabia, given close links between the company and the sovereign.
Saudi Aramco's liquids production is expected to gradually rebound throughout 2021-2022, especially with OPEC+ agreement, said the ratings agency. It added that Aramco has benefited from stabilized oil prices.
Fitch also noted that Saudi Aramco's business profile is very strong. It explained that the company's lifting costs and upstream capex (estimated at about $7 per barrel) are much lower than those of international integrated majors and some national oil companies - a significant advantage in times of volatile oil prices.
It expects Aramco's business profile to benefit from a very large scale of production and long proved reserve life in excess of 50 years.
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