Impressive financial performance, soaring energy prices help Saudi Aramco overtake Apple to become world’s most valuable company, says GlobalData
Following the news that energy giant Saudi Aramco has overtaken Apple to become the world’s most valuable company;
Parth Vala, Analyst at GlobalData, a leading data and analytics company, offers his views:
“Reportedly, from the pick of $182 a share, Apple’s share price reported year-to-date (YTD) drop of 19.5% to $146.5. On the other hand, Aramco posted a 28% YTD increase in its share price, from SR35.55 SR45.50. Subsequently, Aramco reached a market value of US$2.42 trillion while Apple’s market value was US$2.37 trillion, at the close of 11 May 2022.
“Apple posted better than expected results in the quarter ended March 2022. However, amid the increasing supply chain constraints on account of the rapidly changing global geopolitical scenarios, silicon shortages and intense lockdowns in China, the company anticipates that the June quarter could take a revenue hit between the range of US$4bn and US$8bn.
“The Russia-Ukraine conflict has sent the global energy prices soaring, which resulted in the energy companies booking substantial top-line and bottom-line growth. In FY2021, Aramco posted a revenue growth of 74.2% to US$400.5bn while its profitability sky-rocketed by 124.4% to US$110bn.This was due to higher crude oil, and refined and chemical product prices, along with the integration of SABIC’s full-year revenues.”
Source: Global Data