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| Aramco has lost its title as the most profitable company in the world |
Saudi Aramco, the world's largest oil exporter, is no longer the most profitable company in the world. Apple won the title due to a year-long pandemic that lowered fuel prices and increased consumer technology demand.
The iPhone maker's profits for 2020 were $ 57.4 billion, while the oil giant's reported profit was $ 49 billion (negligible to Aramco).
Aramco's annual profit plunged 44% in 2020, which has reconnected the global economy, temporarily plunging oil prices below zero, and a record drop in global carbon emissions.
At the same time, Apple's net profit margin and high profit margin have barely decreased as consumers continue to buy iPhones, iPads and Macs.
The company broke sales records during the Christmas holiday season from October 2020 to December 2020, bringing in $ 22.8 billion in profits in the quarter alone.
Apple and Aramco's financial years do not coincide because Aramco's financial year is on schedule. However, Apple's fiscal year has been extended from September to September.
This means that Apple's financial earnings for 2020 will include the 2019 holiday season, but not include Apple's record earnings for the 2020 quarter.
If you take a look at the 2020 schedule, Apple's leadership in Aramco is even greater.
Aramco continues to plan to pay out $ 75 billion in dividends it promised earlier this year, though that may require more debt.
The company reduced its investment from a previously estimated $ 4 billion to $ 45 billion to $ 35 billion, indicating that Aramco's long-term outlook for oil prices has diminished.
Aramco could regain its place as the world's largest financial source this year as oil demand recovers and the economy returns to normal levels as momentum for vaccine adoption picks up.
Analysts' forecasts for oil prices are back to pre-pandemic levels, and scientists have warned that the world is losing an opportunity to rethink energy habits and embark on a different path of emissions.
In the long term, Apple and its technology counterparts will remain the most profitable companies in the world, while Aramco will be left behind due to the economic adaptation of more green energy sources.