2018’s Most Profitable Company in the World Revealed
NEW YORK – April 2, 2019
According to Moody's Investors Service, the Saudi company Saudi Aramco was the most profitable company in the world in 2018, earning $111.1 billion.
According to experts, Saudi Aramco's net profit in 2018 exceeded those of Apple, Google and ExxonMobil together ($59.5 billion, $30.7 billion, and $ 20.8 billion, respectively).
Earlier, Fitch Ratings reported that Saudi Aramco’s annual earnings before interest, taxes and depreciation amounted to $224 billion, which is also significantly higher than Apple and ExxonMobil.
Moody's and Fitch gave a fairly high rating to the planned Saudi Aramco dollar bond issue: Both agencies put it in fifth place in their investment scale (A1 and A+, respectively). The rating could have been higher, but achieving a higher credit rating for Saudi Aramco was hampered by tax pressure from the state. According to Bloomberg, the company pays 50% of its income in the form of income tax and, moreover, pays on a sliding scale of royalties.
As a result, each extracted barrel of oil brings the company only $26, while Royal Dutch Shell - $38, and in total - $31.
According to Moody's, in 2018 alone, Saudi Aramco fully owned the state paid out $58.2 billion in dividends, and its cash reserves are estimated at $48.8 billion with a debt of $27 billion.