The tech giant and iPhone maker Apple has been replaced as the most valuable company in the world.
As the company’s stock price has dropped significantly in the past few weeks, Apple is still worth the equivalent of US $ 2.37 trillion (around € 2.3 trillion). Saudi oil company Saudi Aramco is outperforming Apple in terms of market value for the first time since 2020. The group’s current value: $ 2.42 trillion (€ 2.35 trillion).
At the beginning of the year, Apple was worth about $ 3 trillion more than the Saudi oil multinational by $ 1 trillion.
Reason: While Saudi Aramco is benefiting from the rise in oil prices, tech stocks like Apple have plummeted in recent weeks, partly due to the US Federal Reserve’s hike in interest rates. Apple also recently warned of the billion-dollar impact of China’s radical zero Covid policy, both on supply chains and demand.
Oil giant Saudi Aramco, on the other hand, recently reported doubling its corporate profits last year! The group justified the success with the resumption of global oil demand after the corona pandemic. Since then, Vladimir Putin’s invasion of Ukraine has again increased demand.
Saudi Aramco has American roots
Saudi Aramco is the largest oil company in the world and is headquartered in Dhahran, Saudi Arabia. The name Aramco is short for “Arabian-American Oil Company” and dates back to before 1972, when the company was still largely in the hands of American oil companies. Between 1972 and 1980, Aramco was nationalized by the government of Saudi Arabia.
In 2019, the group listed 1.5% of its company’s shares on the stock exchange, grossing € 23.1 billion. It was the largest IPO in history. The remaining 98.5% of the shares and therefore the majority of the company belongs to the Gulf state of Saudi Arabia. Saudi Aramco employs approximately 60,000 people worldwide.
The group benefits from favorable conditions for oil production in Saudi Arabia, which is why it regularly records rising profits: in 2021 Saudi Aramco made a net profit of 110 billion US dollars (105 billion euros).
For comparison: Volkswagen car company posted a profit of € 15.5 billion last year …