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Saudi Arabia buys shares of oil companies from the EU

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Saudi Arabia buys shares of oil companies from the EU

Saudi Arabia buys shares of oil companies from the EU
April 09
09:00 2020

The energy market is currently having a tough time low oil quotes logically lead to a drop in stock prices of oil and gas companies.

Someone’s problems play into someone’s hands! It became known that the Public Investment Fund of Saudi Arabia was actively buying the securities of several large European oil companies – Equinor, Eni, Royal Dutch Shell and Total. It became known that the PIF had bought securities for about a billion US dollars and they had no plans to finish the process.

Such Saudi Arabia’s investment activity suggests that the PIF tactics has changed. It was previously stated that the fund had been created specifically to reduce the dependence of the Saudi economy on the oil sector. Accordingly, it was expected that the fund would make any acquisitions except for those related to energy.

So, the PIF has acquired part of the Norwegian company Equinor, the value of which is estimated at $ 200 million. Due to this, Saudi Arabia’s fund has ranked 12th in the list of the largest shareholders of the Norwegian company.

The PIF has chosen the very right moment to conquer the oil and gas industry in Europe, since each of the above companies lost a significant part of their value in 2020. Shell and Total have lost 35% and 31%, respectively, while Eni and Equinor have lost 33% and 23%.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

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