As per the Fortune 500 list, the company that briefly dethroned Apple as the World’s most valuable company has also turned out to be the most profitable one. It is the Saudi oil giant Saudi Aramco. Continue reading to know more about the company.
What Is Saudi Aramco?
Saudi Aramco is an oil giant based in Saudi. Regarding revenue, it sits in the second position in the World, only behind Walmart. Saudi Aramco tops the Fortune 500 list for being the most profitable company globally this year.
The company earned a profit of $279.4 billion over the last 12 months. The oil behemoth’s profit over the previous year is equivalent to Apple, Microsoft, and Alphabet all put together. Aramco’s closest rivals’ profits were roughly $289.9 billion, which is only $10 billion less than the profits of the biggest oil company in the World. Saudi Aramco’s shares are up nearly 10% this year to date.
The company might raise its official selling price (OSP) for its flagship, Arab light crude, in September by about 45 cents. In March, the company declared that the profits are more than double due to soaring prices.
The Stock Market Buzz
The value of shares for Saudi Aramco has seen a rise of about 10%, whereas the value of shares of Apple has seen a drop of more than 5%. Aramco’s market value was just under $2.43 trillion, which converted its market cap to dollars.
As investors sell off equities in several industries, energy stocks and prices have risen. Further, there are fears of a deteriorating economic environment.
World’s 10 Most Profitable Companies
Moreover, Apple has fallen nearly 20% since its $182.94 peak on January 4. Aramco stocks are up by over 27% since 2022. Here is the list of the World’s 10 Most Profitable Companies in 2023. Let’s have a look at the 10 most profitable companies of the year.
1. Saudi Aramco: Profit-$159 billion
2. Apple: Profit-$99 billion
3. Microsoft: Profit-$72 billion
4. Alphabet (Google’s parent company): Profit-$59 billion
5. U.S. Postal Service: Profit-$56 billion
6. Exxon Mobil: Profit-$55 billion
7. Industrial and Commercial Bank of China: Profit-$53 billion
8. China Construction Bank: Profit-$48 billion
9. Samsung Electronics: Profit-$42 billion
10. Shell: Profit-$42 billion
The move proved to be short-lived, and Apple regained the top spot. In conclusion, soaring oil prices may be profitable for oil giants like Saudi Aramco, but rising inflation is forcing the federal reserve to raise interest rates at a faster pace. The higher the rates, the more investors discount the value of future revenue flows. This can push down the company’s stock prices. Do you own shares from any of the leading companies? Have you ever consumed services from these top companies? What are your views on the profit margins maintained by these companies? Let us know your thoughts on the abovementioned topic in the comment section. We’re waiting for your response!
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