Saudi Aramco Surpassed Apple As The World’s Most Profitable Company After Making $111 billion In 2018

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According to financial data that was disclosed by Saudi Aramco, the state-run oil giant in Saudi Arabia, the company is the most profitable company in the world by far.

The data revealed that the firm made a whopping $111 billion last year. By comparison, Apple made only $59.53 billion in fiscal 2018.

Saudi Aramco released its financial information in a prospectus for a $10 billion bond sale, which the firm plans to utilise to finance an almost $70 billion stake in the petrochemicals firm of Saudi Arabia.

Despite the massive earnings of Aramco, the firm did not receive the top credit rating from agencies such as Moody’s as its heavy dependence on the economy of the country could be considered as a headwind for the firm. Moody’s issued an A1 rating for Aramco. Companies such as Exxon Mobil and Chevron have ratings of Aaa and Aa2, which are higher as compared to that of Aramco’s.

In a note, a senior credit officer at Moody’s, Rehan Akbar, stated: “Saudi Aramco has a proven track record of implementing large scale projects and has over the past decade significantly increased hydrocarbon production and refining capacity.”

He added: “At the same time, credit linkages to the government of Saudi Arabia (A1 stable; A1 foreign currency ceiling) are significant, and result in our decision to constrain Aramco’s rating to that of the government.”

Akbar added: “Aramco is wholly-owned by the state and is expected to remain largely under government ownership even after any potential IPO in the future.”

He continued: “While there is a clear track record of Aramco having been run as a commercially independent company, the government’s budget is highly reliant upon contributions from Aramco in the form of royalties, taxes and dividends.”