Saudi Aramco is now the second largest company in the world

Saudi Aramco is now the second largest company in the world

Saudi Arabian Oil Group, Saudi Aramco has emerged as the second largest company in the world after displacing Microsoft. After displacing Microsoft to become the second largest company in the world, it only has to displace Apple to become the largest company in the world.

According to reports, Aramco’s current market value is $2.11 trillion, which is 7.92 trillion Saudi riyals. The company displaced Microsoft to become the second-largest company in the world in April 2023.

Saudi Aramco’s profits for 2022 exceeded the profits of Apple, Microsoft, and ExxonMobil combined, according to the ranking on the Companies Market Cap website. Fitch Ratings have also upgraded Saudi Aramco’s rating to A+, with a stable outlook.

Background story

In March 2023, Nairametrics reported that Saudi Aramco posted a net profit of $161.1 billion for 2022. This is the highest profit ever declared by an oil firm anywhere in the world.

It is also the company’s highest-ever profits since being listed, up by 46.5% to 604 billion riyals ($161 billion), compared with 412.4 billion riyals ($109 billion) in 2021.

Although Saudi Aramco’s first quarter 2023 results will be out on the 9th of May, the company has kept an open policy and already announced that it has every intention to increase its crude production by spending up to $55 billion in 2023 on capital projects.

Company’s Q1 2023 net income estimate

According to OPEC Chief correspondent, Amena Bakr, the company’s Q1 2023 net income estimate which is based on 16 analyst forecasts is $31.2 billion. She also revealed that the focus areas for Saudi Aramco include the following;

  • Building upstream capacity to 13 million by 2027
  • Expanding its downtown footprint in key Asian markets including China
  • Pressing ahead with investments in technologies to further reduce its carbon footprint to meet its net zero targets by 2050.

Saudi Arabia currently has a 12 million bpd nameplate oil production capacity, which it plans to expand by 1 million bpd by 2027 through a series of offshore and onshore incremental projects. In March 2023, the Chief executive at Saudi Aramco, Amin Nasser announced that it was aiming for 3 million barrels per day (bpd) of additional oil export capacity by the end of this decade. This will be led by incremental oil and gas projects in the country and by replacing liquid fuels.

According to Nasser, 1 million bpd of additional crude capacity would come from Aramco’s ongoing capacity enhancement program by 2027, and another 1 million bpd would follow from availing additional gas in the utility sector, which is presently being used as liquids.

He also said that the expansion work on Aramco’s gas production capacity will bring additional natural gas liquids and condensate, freeing up another 1 million bpd by 2030. He, however, noted that there is no government mandate currently to go beyond 13 million bpd of oil production.

What you should know:

Saudi Aramco is expanding its gas production capacity led by the $100 billion-plus Jafurah unconventional gas program and it aims to achieve a 50% growth in its gas production by 2030.

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