Saudi Aramco has been ranked the second most valuable oil and gas brand in the for the first time, according to the latest report by independent brand valuation consultancy Brand Finance
With a brand value of US$46.8bn, the oil giant is now only a fraction behind long-standing leader Shell. The brand is also the highest new entrant in the newly released Brand Finance Global 500, in 24th position, and has claimed the title of the most valuable brand in the Middle East.
The IPO has proven to be successful for the brand as Saudi Aramco raised US$25.6bn. Even after navigating through recent attacks on two of its oil processing sites, it is now the world’s most valuable listed company, comfortably ahead of tech titans Apple and Microsoft.
Saudi Aramco is focused on leveraging its strength in upstream while growing its downstream operations through acquisitions, both in Saudi Arabia and major global markets. The brand must now focus on developing international perceptions of the brand to open it up further for partnerships and investment.
David Haigh, CEO of Brand Finance, commented, “Some might argue that the end is nigh for big oil, but many sectors will be difficult to decarbonise and will likely need oil and gas for decades to come. The challenge at hand for the industry is to make the production and use of oil and gas as efficient as possible throughout this transition, while actively preparing for the future by investing in renewables.”
Total lagging while ADNOC thrives
All brands in the top 10 have recorded solid brand value growth, apart from France’s Total (down eight to US$23.2bn). As one of the six supermajor oil brands in the world, Total has traditionally performed well in the ranking, however, following a year of heightened market volatility, the brand’s profits have dented considerably. The brand has sold a significant amount of assets, an attempt to protect against low oil prices and concentrate on areas of the business that can withstand oil price fluctuation.
In contrast, Abu Dhabi National Oil Company (ADNOC) has entered the top 10 after recording the fastest brand value growth in the top 20, up 29 per cent to US$11.4bn. The brand is also the first UAE brand to achieve a brand valuation of more than US$10bn.
PETRONAS sector’s strongest
In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria, PETRONAS (up 14 per cent to US$15.2bn) has claimed the title of the world’s strongest oil and gas brand, with a Brand Strength Index (BSI) score of 86.3 out of 100 and a corresponding AAA brand strength rating.
