Saudi Aramco overtakes Apple as world's most valuable company

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Oil platform in Saudi Arabia

Photo: MOHAMED ALEBN ALSHAIKH / Saudi Aramco / AFP

The oil giant Saudi Aramco has replaced the US technology group Apple as the most valuable company in the world in view of the high energy prices.

The part-state Saudi Arabian company, which ranks as the world's largest oil-producing company, was valued at $2.42 trillion based on the share price as of Wednesday night's close.

Apple's stock market value was $2.37 trillion.

While Saudi Aramco is benefiting from the high oil price, technology stocks have collapsed in recent weeks.

Apple had recently warned of the negative effects of the corona measures in China worth billions, both in terms of demand and the supply chain.

The surprisingly good sales figures for the first three months of the year could do little to change the investors' pessimistic outlook.

Saudi Aramco, on the other hand, recently reported a doubling of company profits for the past year and justified this with the recovery in global demand after the corona pandemic.

Since then, the Russian invasion of Ukraine has once again boosted demand.

In 2021, the oil giant's net income rose to $110 billion;

In 2020 it was $49 billion.

However, in recent months the group has had to struggle with interruptions caused by attacks by the Houthi rebels from Yemen on Saudi Arabia's oil infrastructure.

In addition, the currently rising inflation could lead to a reduction in consumer spending – and thus also reduce oil demand.

Progress on the "Gas Expansion Program"

CEO Amin Nasser therefore pointed out in his outlook for Saudi Aramco that there was uncertainty given "geopolitical factors".

The group has recently made "progress" in, among other things, increasing production capacities for crude oil and also in its "gas expansion program".

In 2021, economic conditions would have "improved significantly."

hey/AFP