Contrary to popular belief, the world’s most profitable company in 2023 is not a tech giant like Apple Inc. or Alphabet Inc.’s Google but oil giant Saudi Aramco.
Last year, Saudi Aramco reported a net income of $161.1 billion, marking its highest annual profit as a listed company. This immense profitability is built on a foundation of $592 billion in oil and petrochemicals sales, a significant increase from $400 billion in sales the previous year. Fortune recognized Saudi Aramco as the most profitable company ever in August.
In 2022, Saudi Aramco’s revenue reached $604.4 billion, with a market value of $2.1 trillion. The Saudi government owns over 90% of Aramco, although a 1% stake was floated on the country’s stock exchange in 2019.
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In the third quarter, Saudi Aramco continued to demonstrate robust financial health. The company reported a net income of $32.6 billion and a free cash flow of $20.3 billion. Its gearing ratio stood at -7.6% as of September 30, 2023, reflecting the company’s solid financial position. These results were part of a broader expansion and diversification strategy, including a foray into the liquefied natural gas (LNG) market and plans to enter the South American market through downstream retail acquisitions.
Aramco President and CEO Amin Nasser highlighted the company’s commitment to evolving its business model and meeting customer needs. Nasser emphasized the importance of investing across the hydrocarbon chain and leveraging advanced technologies to optimize operations and develop emerging energy solutions. He also underscored the company’s belief in a balanced and realistic energy transition plan, one that considers the needs of diverse global geographies to avoid disparities among global energy consumers.
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Tech giants Apple and Google also showcase significant earnings, albeit not at the same level as Saudi Aramco. For the quarter ending June 30, Apple reported a net income of $19.88 billion, marking a 2.26% year-over-year increase. However, for the 12 months ending June 30, Apple’s net income was $94.76 billion, which represented a 4.89% decline from the previous year. In 2022, Apple’s annual net income was $99.8 billion, up 5.41% from 2021.
Google parent company Alphabet also demonstrated substantial profitability. For the quarter ending Sept. 30, Alphabet’s net income was $19.689 billion, a 41.55% increase year-over-year. For the 12 months ending Sept. 30, Alphabet’s net income was $66.732 billion, a year-over-year decline of 0.39%. Alphabet’s annual net income for 2022 was $59.972 billion, a 21.12% decline from 2021.
While both Apple and Google maintain strong financial positions and are key players in the global market, their profitability is overshadowed by Saudi Aramco’s record-breaking earnings. Saudi Aramco’s net income of $161.1 billion for the year places it ahead of these tech giants in terms of profitability. The strategic moves and expansions undertaken by Saudi Aramco, such as entering the LNG market and the South American retail sector, indicate a proactive approach to growth and diversification, further solidifying its position as the world’s most profitable company.
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This article The World’s Most Profitable Company Is Not Apple Or Google — It’s A 90% Government-Owned Business In Saudi Arabia originally appeared on Benzinga.com.
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