Saudi Aramco dethrones Apple as the world’s most valuable company – News
The oil giant was valued at $2.42 trillion based on its stock price at market close
Saudi Aramco dethroned Apple as the world’s most valuable company on Wednesday as soaring oil prices sent stocks soaring and tech stocks slumped.
The Saudi national oil and natural gas company, billed as the world’s largest oil-producing company, was valued at $2.42 trillion based on its stock price at market close.
Apple, meanwhile, has seen its share price fall over the past month and was valued at $2.37 trillion when official trading closed on Wednesday.
The stock price fell as Apple reported better-than-expected earnings in the first three months of this year amid strong consumer demand.
But, Apple warned that China’s Covid-19 lockdown and ongoing supply chain issues would hit June quarter results by $4 billion to $8 billion.
“Supply constraints caused by Covid-related disruptions and industry-wide silicon shortages are impacting our ability to meet customer demand for our products,” said CFO Luca Maestri on a conference call with analysts.
Results looked good after some Big Tech peers stumbled as growth in stay-at-home demand amid the pandemic slows and companies grapple with rising operating and labor costs work.
Oil giant Saudi Aramco recently reported a 124% rise in net profits last year, hours after Yemeni rebels attacked its facilities, causing a “temporary” drop in production.
As the global economy began to rebound from the Covid-19 pandemic, “Aramco’s net income increased 124% to $110.0 billion in 2021 from $49.0 billion in 2020” , the company said.
The kingdom, one of the world’s top crude exporters, has come under pressure to increase output as Russia’s invasion of Ukraine and subsequent sanctions on Moscow rattled global oil markets. energy.
Aramco Chairman and CEO Amin Nasser warned that the company’s outlook remained uncertain in part due to “geopolitical factors”.
“We continue to make progress in increasing our crude oil production capacity, executing our gas expansion program and increasing our liquids-to-chemicals capacity,” Nasser said. .
On the results, for 2021, he acknowledged that “the economic conditions have improved considerably”.
A strong rebound last year saw demand for oil rise and prices recover from their 2020 lows.
Inflation could lead to lower consumption, reducing demand for oil, while tech stocks could continue to be dragged lower by investor concerns about business costs, rising interest rates and supply chain issues.