Saudi Arabia’s state-owned oil and gas giant Aramco has overtaken Microsoft to become the world’s second-largest company in terms of market value, boasting $2.11 trillion in value.
The Saudi company’s stock soared last month after Crown Prince Mohammed Bin Salman announced he would transfer four percent of Aramco to Sanabil Investments, which is owned by the Saudi Public Investment Fund (PIF).
“This is a private transfer between the state and Sanabil, and the company is not a party to the transfer and did not enter into any agreements or pay or receive any proceeds from the transfer,” Aramco said in a stock exchange filing cited by AP.
Aramco’s market value is now second only to Apple.
Last year, the oil giant reported a net profit of $161.1 billion, making it the world’s most profitable company. Their net profit was higher than the profits of Apple, Exxon, and Microsoft combined.
Aramco’s chief executive Amin Nasser has said he expects oil and gas demand across the world to “remain robust,” fueling the future growth of the company.
The landmark achievement by the Saudi oil giant comes at a time when the kingdom has been spearheading a push alongside its OPEC+ partners to cut oil production levels.
Since November of last year, OPEC+ has been cutting oil production levels as a precautionary measure aimed at supporting stability in oil markets due to the turmoil caused by western sanctions on Russia’s energy sector.
Saudi Arabia has also been pursuing a new strategy to end the conflict in Yemen and renew ties with Iran in a bid to protect its booming energy sector.
