Saudi Aramco surpassed Apple as the world’s most valuable business on Wednesday, as rising oil prices drove up shares while tech companies fell.
The Saudi Arabian national petroleum and natural gas business, described as the world’s largest oil producer, was valued at $2.42 trillion based on the closing market price of its shares.
Meanwhile, Apple’s stock has dropped in value over the last month and was valued at $2.37 trillion after formal trading finished on Wednesday. Despite posting better-than-expected profits in the first three months of this year due to robust consumer demand, Apple’s stock price has fallen. However, Apple warned that the China Covid-19 lockout and ongoing supply chain issues will reduce June quarter earnings by $4 to $8 billion.
“Supply constraints caused by Covid-related delays and industry-wide silicon shortages are affecting our ability to meet customer demand for our products,” Chief Financial Officer Luca Maestri said during an analyst conference call.
The results appeared positive following setbacks by some Big Tech peers as growth from stay-at-home demand slows during the pandemic and corporations face growing operating and personnel costs.
Saudi Aramco recently claimed a 124 percent increase in net profit for last year, only hours after Yemeni militants attacked its facilities, inflicting a “temporary” reduction in output.
“Aramco’s net income grew by 124 percent to $110.0 billion in 2021, compared to $49.0 billion in 2020,” the business reported, as the global economy began to recover from the Covid-19 pandemic. As a result of Russia’s invasion of Ukraine and ensuing sanctions against Moscow, the monarchy, one of the world’s top petroleum producers, has been under pressure to increase output.
Amin Nasser, president and CEO of Aramco, warned that the company’s prospects remained uncertain owing to “geopolitical considerations.”
“We are making headway on growing our crude oil production capacity, implementing our gas development program, and increasing our liquids to chemicals capability,” Nasser added. On the results for 2021, he recognized that “economic conditions have significantly improved.”
Last year’s strong comeback saw demand for oil rise and prices recover from their 2020 lows.
