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New oil company number one: Saudi Aramco now more valuable than Apple

Status: 05/12/2022 10:46

Apple is no longer the most valuable company in the world. The oil giant Saudi Aramco has bypassed the Californian company. What makes Saudi Aramco so valuable?

Saudi Aramco has overtaken Apple as the world’s most valuable company. The partially state-owned company of Saudi Arabia, which ranks as the largest oil company in the world, was valued at $ 2.42 trillion based on its stock price at the close of the market on Wednesday. The market value of the US tech group Apple, on the other hand, dropped to $ 2.37 trillion. Saudi Aramco has therefore left Apple behind for the first time since 2020.

While Saudi Aramco is benefiting from rising oil prices, tech stocks have plummeted in recent weeks. At the beginning of the year, Apple was valued at around three trillion dollars, a trillion higher than the oil producer of Saudi Arabia.

Saudi Aramco has American roots

However, only a small fraction of Aramco’s shares are freely tradable and the vast majority are state-owned. The name Aramco is short for “Arabian-American Oil Company” and dates back to a time when the company was still largely American-owned. At the time, the group included Texaco, now part of Chevron, and the now merged Exxon and Mobil Oil groups.

Apple had recently warned of the negative effects of crown measures in China worth billions, both in terms of demand and supply chain. Additionally, the iPhone maker’s and other tech stocks have come under increasing pressure due to rising capital market interest rates. The surprisingly good sales figures for the first three months of the year could do little to change investors’ pessimistic outlook.

Saudi Aramco, on the other hand, recently reported a doubling of corporate profits over the past year. The group justified this with the recovery in global demand after the corona pandemic. However, in recent months the group has had to contend with disruptions caused by attacks by Houthi rebels from Yemen on Saudi Arabia’s oil infrastructure.

Saudi Aramco is still heavily dependent on the Ghawar oil field in the east of the country. It is the largest in the world and is said to still be responsible for around four percent of global production even after decades of production. Apparently, fears that production could drop dramatically due to increasing exhaustion have not yet materialized.

Last year Saudi Aramco recorded sales of $ 400 billion and profits of $ 110 billion. In the same period, Apple made over $ 378 billion and earned nearly $ 101 billion.

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