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Saudi Aramco eclipses Apple as the world's most profitable company

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  • Economy
  • 7 months ago
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Saudi Aramco is officialy the world's most profitable company as net profits reached US$111 billion for 2018, according to an assessment published by Moody's Investors Services, which offered a rare insight into the state-owned oil firm's finances before it issues its first bonds in international markets.

That places the crude oil producer way ahead of companies such as Apple ($60 billion in 2018), Royal Dutch Shell ($23 billion) and Exxon Mobil ($21 billion).

Moody's assessment pointed to the oil giant's revenue which hit $355.9 billion last year and that it produced a staggering 10.3 million barrels per day of crude oil in 2018, meanwhile another publishing by Fitch Ratings showed that Aramco posted profits of $224 billion before interest, tax, depreciation and amortization.

Moody's said Aramco paid $58.2 billion in dividends in 2018 and $50.4 billion in 2017. It remains unclear exactly how these dividends are distributed within the Saudi monarchy and its ruling family.

Fitch said Aramco accounted for around 70% of the Saudi government's budget revenue between 2015 and 2017, but it wasn't immediately clear if that figure included the dividends mentioned by Moody's.

Ahead of a partial listing of Aramco on an international exchange in 2017 the Saudi government reduced Aramco's tax rate from 85% to 50% in an effort  to create new income avenues and reduce the government's reliance on oil for revenue.

In their first-ever grade assessment for Aramco, Fitch issued the firm an A+ rating, while Moody's gave it it's A1 rating.

 

 

Source: Smart Trend Team