How does Saudi Aramco “dethrone” Apple?

Due to soaring oil prices, Saudi Arabia’s national petroleum and natural gas company – Saudi Aramco, considered the world’s largest oil producer, is valued at $2.42 trillion based on share price. of this company at market close. Meanwhile, Apple was valued at $2.37 trillion at the close of the official transaction on May 11.

While the values ​​of companies may change again due to stock price volatility, today’s move suggests broader trends in the economy. global economy.

How Saudi Aramco dethroned the world’s most valuable Apple?

Apple has seen its stock price fall over the past month. Shares sank despite Apple reporting better-than-expected profits for the first three months of this year amid strong consumer demand.

However, Apple has determined that China’s increase in strong measures to prevent COVID-19 and ongoing supply chain troubles will reduce the company’s Q2 business results from 4 to 8. billion USD.

Meanwhile, oil giant Saudi Aramco recently reported a 124% increase in net profit last year. As the world economy begins to recover from the COVID-19 pandemic, “Aramco’s net income grows 124% to $110.0 billion in 2021, from $49.0 billion in 2020,” the company said. said.

Saudi Aramco, 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 have roiled global energy markets. .

Aramco President and CEO Amin Nasser warned that the company’s outlook remained uncertain partly due to “geopolitical factors”.

“We continue to make progress in increasing crude oil production capacity, implementing a gas expansion program and increasing capacity from liquids to chemical capacity,” said Chairman Nasser.

As for the results, in 2021, he acknowledged that “economic conditions have improved significantly”. The strong recovery last year saw demand for oil pick up and prices recover from their 2020 lows.

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