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San Francisco: Saudi Arabia-based petroleum major Saudi Aramco has become the world's most valuable company. Saudi Aramco has replaced Apple at the top position.
Earlier, Apple was known as the world's most valuable company, but on Wednesday, Saudi Aramco snatched the coveted title. This happened because the rise in oil prices led to a rise in oil sector stocks and a fall in tech industry stocks.
, the national petroleum and natural gas company of Saudi Arabia, is also known as the world's largest oil producer. At the close of the market on Wednesday, Saudi Aramco's market value has reached 2.42 trillion dollars, while Apple's market value has been reduced to 2.37 trillion dollars due to the decrease in share price. Apple's stock price has seen a significant drop in the past month.
Apple posted better-than-expected profits in the first three months of this year amid strong consumer demand, but the stock price declined. Simultaneously, Apple estimates that the June quarter results may shrink by $4 to $8 billion due to the Kovid-19 lockdown and supply chain crisis in China.
“Supply constraints due to Covid-related disruptions and industry-wide silicon shortages are impacting our ability to meet customer demand for our products," Saudi Aramco Chief Financial Officer Luca Maestri said in a conference.
Petroleum giant Saudi Aramco reported a 124 percent increase in last year's net profit. This happened after its facility was recently attacked by Yemeni rebels and there was a "temporary" drop in production.
"Aramco's net income increased 124 percent to $110.0 billion in 2021 compared to $49.0 billion in 2020," the company said in a statement.