Record Results Not Enough for Aramco to Top Apple

Record Results Not Enough for Aramco to Top Apple
Aramco is currently ranked second in a list of the world's largest companies by market cap.

Earlier this week, Saudi Aramco announced a new quarterly earnings record and declared a dividend above $18 billion, but that wasn’t enough to see the business top Apple in the race to become the largest company by market capitalization.

According to companiesmarketcap.com, a list of the world’s largest companies by market cap that excludes companies that are not publicly traded and is updated daily, Aramco is ranked second with a market cap of $2.34 trillion at the time of writing. Apple, which often trades first place with Aramco on the list, is first with a market cap of $2.78 trillion at the time of writing.

Aramco posted a 90 percent year on year increase in 2Q net income and declared a dividend of $18.8 billion to be paid in the third quarter. The company noted that the results set a new quarterly earnings record for the business since its Initial Public Offering in 2019 and said they were primarily driven by higher crude oil prices and volumes sold, and higher refining margins.

Aramco achieved a 2Q net income of $48.4 billion, compared to $25.5 billion for the same period in 2021. Free cash flow increased by 53 percent to $34.6 billion in the second quarter, compared to $22.6 billion in 2Q 2021, and capital expenditure increased by 25 percent to $9.4 billion in the second quarter, compared to 2Q 2021.

Last month, Apple announced a June quarter revenue record of $83 billion, which it said was up two percent year over year.

The latest companiesmarketcap.com list shows that Microsoft is in third place with a market cap of $2.18 trillion, Google is in fourth with a market cap of $1.59 trillion, and Amazon is fifth with a market cap of $1.45 trillion. The next placed energy company in the list is ExxonMobil in 14th, with a market cap of $384.75 billion. Chevron is next, in 25th place, with a market cap of $306.94 billion, followed by Reliance Industries in 41st, with a market cap of $224.98 billion, and Shell in 52nd place, with a market cap of $193.99 billion.

To contact the author, email andreas.exarheas@rigzone.com


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