Saudi Aramco becomes worlds most valuable company replacing Apple
Net income leapt 90 per cent year-on-year for world's biggest oil producer Aramco, which clocked its second straight quarterly record | Photo: Saudi Aramco

Saudi Aramco becomes world's most valuable company replacing Apple

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Oil giant Saudi Aramco became the world’s most valuable company as it surpassed American tech behemoth Apple on Wednesday (May 11), according to reports.

The Saudi Arabian Oil Company, which is the largest oil-producing company in the world, was valued at $2.464 trillion while Apple slipped to second with $2.461 trillion.

At the third position was Microsoft ($1.978 trillion) followed by Alphabet ($1.485 trillion) and Amazon ($1.106 trillion).

Surging oil prices pushed Saudi Aramco’s share to 46.20 riyals on the Saudi Exchange (Tadawul).

According to a CNN report, earlier this year, Apple hit the $3 trillion mark, becoming the first to do so and making it by far the most valuable company on the planet.

Aramco at one point also held that mantle after a historic initial public offering in 2019, which propelled its valuation to $2 trillion, it said.

Saudi Aramco shares are up 27% so far this year, and Apple’s stock has fallen more than 17% since January, the report added.

In March, Saudi Aramco announced its full-year 2021 financial results, reporting that net income more than doubled year-on-year to $110.0 billion. Aramco declared a fourth quarter dividend of $18.8 billion, to be paid in the first quarter of 2022.

Aramco’s net income increased by 124% to $110.0 billion in 2021, compared to $49.0 billion in 2020. The increase in net income reflects higher crude oil prices, stronger refining and chemicals margins, and the consolidation of Saudi Basic Industries Corporation’s (SABIC) full-year results, the firm said.

According to the company, Aramco continued its strong track record of supply reliability by delivering crude oil and other products with 99.9% reliability in 2021, despite challenges caused by COVID-19. It was the second year running that Aramco achieved this level of reliability.

Aramco President & CEO Amin H. Nasser had said in March, “We recognise that energy security is paramount for billions of people around the world, which is why we continue to make progress on increasing our crude oil production capacity, executing our gas expansion program and increasing our liquids to chemicals capacity.

“We are also investing in CCS, renewables and low-carbon hydrogen production – supporting the global energy transition and advancing our net-zero ambition.”

Saudi Aramco traces its beginnings to 1933 when a Concession Agreement was signed between Saudi Arabia and the Standard Oil Company of California (SOCAL). A subsidiary company, the California Arabian Standard Oil Company (CASOC), was created to manage the agreement, according to the company’s website.

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