World-leading companies keep their positions and supremacy to themselves. Microsoft and Apple have been the most valuable companies. But, Saudi Arabian National petroleum and natural gas company ARAMCO dethrones Apple, by becoming the most valuable company. It is valued at $2.42 trillion.
Apple’s share price dropped last month and was worth $2.37 trillion although the demand was high. There are speculations that because of the pandemic and ongoing supply chain might cause a loss of $4 to $8 billion.
Luca Maestri, Chief Financial Officer shared her views with the analysts, “Supply constraints caused by COVID-related disruptions and industry-wide silicon shortages are impacting our ability to meet customer demand for our products.”
The reason to become valuable is the surging oil prices. It is the largest oil-producing company in the world. Aramco’s profit increased 124% in the last year after the industry regained its start from the pandemic. They can cover the losses of 2020 when the oil increases and prices recovered. “Aramco’s net income increased by 124 percent to $110.0 billion in 2021, compared to $49.0 billion in 2020.”
They have been under pressure for raising prices after the Russia Ukraine conflict. Their positions have remained uncertain because of the geopolitical factors involved.
Amin Nasser who is Aramco’s President and CEO, said, “We continue to make progress on increasing our crude oil production capacity, executing our gas expansion program, and increasing our liquids to chemicals capacity. The economic conditions have improved considerably.”
One thing is certain no one can stay in the international arena for long. There are competitors out there who would wait for any opportunity to come to the top.