Saudi Aramco, the world’s largest oil exporter, is no longer the most profitable company in the world, as after a year of an epidemic that led to lower fuel prices and an increase in consumer technology demand, this title goes to Apple.
The iPhone manufacturer has investigated $ 57.4 billion In its 2020 fiscal year, the oil giant posted a profit (negligible for Aramco) of $ 49 billion.
And theRetreated Aramco’s annual profit increased by 44 percent in 2020, which has reconnected the global economy, briefly lowered oil prices below zero, and sparked a record drop in carbon emissions worldwide.
Meanwhile, Apple has barely registered any decline in its flat and high margins, as consumers continue to buy iPhones, iPads and Macs.
The company broke revenue records in the holiday shopping season between October and December of 2020, and in that quarter alone, it made $ 22.8 billion in profit.
The financial years of Apple and Aramco do not coincide, as Aramco’s fiscal year coincides with the calendar, but Apple’s fiscal year extends from September to September.
This means that Apple’s profits for the fiscal year 2020 include the holiday shopping season for 2019, but does not include its record profits in the quarterly year for 2020.
And if you look at the 2020 calendar only, Apple’s lead over Aramco will be greater.
Aramco still plans to pay out the $ 75 billion in dividends it promised investors at the start of the year, although it will likely have to take on more debt to do so.
The company is also cutting capital expenditures to $ 35 billion – down from a previously projected range of $ 40 billion to $ 45 billion – in a sign that Aramco’s long-term oil price outlook is muted.
Aramco could regain its place as the world’s largest money maker this year, as oil demand bounces as the vaccine launch gains momentum and the economy returns to a semblance of normality.
Analysts’ forecasts for oil prices have returned to pre-epidemic levels, and scientists indicate that the world is losing its opportunity to rethink its energy habits and put itself on a different path for carbon emissions.
In the long term, Apple and its technology counterparts remain at the top of the list of the most profitable companies in the world, while Aramco is lagging behind as the economy adapts to more green energy sources.