Apple takes over Saudi Aramco's title of world's most profitable company.

Saudi Aramco loses title of world's most profitable company to Apple as 2020 profits sink to $49 billion.

Saudi Aramco is no longer world's most profitable company after the oil demand fell drastically during the COVID-19 pandemic.

On Sunday, Saudi Aramco in its financial reports for the year 2020 showed a 44% collapse in profits. The company also said that despite this, it has plans of paying out its full-year dividend of $75 billion.

COVID-19 wreaked havoc in the demand for oil as the lockdown to fight the pandemic reduced travels across the world.

The price of oil even went negative for a brief period as the imbalance of demand and supply led to a shortage of storage places.

Aramco also said that the reports were because of both lowered crude prices and volumes sold. The weakened margins for its refining and chemical business were also a factor.

Saudi Aramco's CEO, Amin Nasser, said that "As the enormous impact of COVID-19 was felt throughout the global economy, we intensified our strong emphasis on capital and operational efficiencies."

He also went on to say "Looking ahead, our long-term strategy to optimize our oil and gas portfolio is on track and, as the macro environment improves, we are seeing a pick-up in demand in Asia and also positive signs elsewhere. We remain confident that we will emerge on the other side of this pandemic in a position of strength."

After the reports by Aramco, Apple can now claim the title for the world's most profitable company after its reports of an income of $59 billion in 2020.

This might although be short-lived based on the strong comeback of oil prices in 2021 so far.

Aramco also reported an income of $88 billion for the year 2019.

Aramco expects to spend $35 billion on capital expenditures in the coming year which is way below their previous guidance of $45 billion

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