Ap­ple over­takes Aramco as World’s Most Valu­able Com­pany


Tech gi­ant Ap­ple has over­taken oil gi­ant Saudi Aramco as the world’s most valu­able com­pany, a clear in­di­ca­tion of the chal­lenges fac­ing the oil sec­tor.

Tech is rev­el­ing in the coro­n­avirus, smoothly tran­si­tion­ing work­ers to re­mote work and a mag­net for those look­ing to sink money into “stay at home” stocks. Not so for the oil in­dus­try, which has strug­gled on mul­ti­ple fronts, in­clud­ing an ex­cess of oil and crash­ing de­mand.

Ap­ple’s stock did well on Fri­day af­ter a tremen­dous Q2 re­port, and its mar­ket cap rose to $ 1.8 tril­lion.

Mean­while, Exxon’s earn­ings re­port—the sec­ond- largest en­ergy com­pany af­ter Aramco-- was any­thing but great, with ru­mors that Exxon is plan­ning some sig­nif­i­cant cuts to jobs and spend­ing so it can keep kick­ing out that beloved div­i­dend.

Aramco’s Q2 re­port will not be avail­able un­til Au­gust 9, and it will be a reflection of the over­all state of the oil mar­ket in Q2—in other words, it isn’t go­ing to be pretty. Aramco’s Q1 profit fell 25%, and that was well be­fore the coro­n­avirus in­fil­trated the world and cre­ated wide­spread lock­downs. In fact, oil prices were only re­ally low dur­ing the last few weeks of Q1.

But in March, Aramco low­ered its April OSP. In April, it low­ered May’s OSP; each cut an­other blow to the world’s largest oil pro­ducer. It wasn’t un­til May when Aramco boosted its next-month Osp—the last month of the quar­ter.

This will likely re­sult in Aramco’s Q2 rev­enue com­ing in south of $ 40 bil­lion, com­pared to $ 75 bil­lion this time last year. Com­pare that to Ap­ple’s nearly $60 bil­lion in rev­enue for the quar­ter, and you have a new king of the hill.

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