Saudi Aramco is now the most profitable company in the world following the organization’s fiscal 2018 results, which revealed that the business surpassed the $100 billion mark in annual earnings.
The Saudi Arabia-based oil business revealed that its profit in 2018 came in at $111 billion, which makes it more profitable than Apple (NASDAQ:AAPL), coming in at number two on the most profitable businesses in the world. Saudi Aramco’s sales total is 86.5% higher than Apple’s 2018 income of $59.53 billion.
The company revealed its financial information through a prospectus for a $10 billion bond sale, which it plans to use to finance a stake of roughly $70 billion in its petrochemicals company. However, the business was unable to receive top credit ratings from some of the most trustworthy agencies from around the world due to the part that a large chunk of the company’s business is reliant on Saudi Arabia’s economy.
Moody’s gave Saudi Aramco an A1 rating, below businesses such as Chevron and Exxon Mobil. “Credit linkages to the government of Saudi Arabia (A1 stable; A1 foreign currency ceiling) are significant, and result in our decision to constrain Aramco’s rating to that of the government,” Rehan Akbar, senior credit officer at Moody’s, wrote in a note.
“While there is a clear track record of Aramco having been run as a commercially independent company, the government’s budget is highly reliant upon contributions from Aramco in the form of royalties, taxes and dividends,” he added.