Saudi Aramco (TADAWUL: 2222) has reported a 44% loss in net income, down from US$88 billion to US$49 billion, effectively clearing a direct path for Apple (NASDAQ: AAPL) to become the world’s most profitable company – with a reported net income of US$59 billion in 2020.
According to Business Insider, while the Saudi Arabian petroleum giant has been heavily impacted by the ongoing pandemic, it may dethrone Apple to reclaim the title soon enough, especially when you consider both the “strong rebound” in oil prices and staggering precedent set by Saudi Aramco’s 2019 profits.
“In one of the most challenging years in recent history, Aramco demonstrated its unique value proposition through its considerable financial and operational agility,” says Amin Nasser, CEO of Aramco, via press statement.
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“As the enormous impact of COVID-19 was felt throughout the global economy, we intensified our strong emphasis on capital and operational efficiencies,”
“We remain confident that we will emerge on the other side of this pandemic in a position of strength.”
In 2021, Saudi Aramco is also expected to cut down its previous guidance of US$40 billion to US$45 billion in capital expenditure right down to just US$35 billion. Suffice it to say, belts are tightening and gloves are coming off.
Check out the world’s most profitable rankings for the previous year below (adjusted with the recent update).
The World’s Most Profitable Company Rankings [2020 Edition]
**All figures converted to USD
- Apple Inc. (NASDAQ: AAPL)
Net Income: $58.4 billion
- Saudi Aramco (TADAWUL: 2222)
Net Income: $49 billion
- Microsoft Corp. (NASDAQ: MSFT)
Net Income: $44.3 billion
- Industrial & Commercial Bank of China (SHA: 601398)
Net Income: $41.7 billion
- China Construction Bank Corp. (SHA: 601939)
Net Income: $35.6 billion
- Alphabet Group (NASDAQ: GOOGL)
Net Income: $31.5 billion
- Agricultural Bank of China Ltd. (SHA: 601288)
Net Income: $28.4 billion
- JPMorgan Chase & Co. (NYSE: JPM)
Net Income: $25.2 billion
- Alibaba Group Holding Ltd. (NYSE: BABA)
Net Income: $24.9 billion
- Bank Of China Ltd. (SHA: 601988)
Net Income: $24.8 billion