General

Shell becomes Europe’s largest publicly traded company as oil price hike boosts profits

Shell becomes Europe's largest publicly traded company as oil price hike boosts profits

petrol and energy giant Royal Dutch Shell has its place as Europe’s top-ranked publicly traded company on the Forbes Global 2000 ranking, pushing German auto giant Volkswagen AG back to second place.

The London-based Anglo-Dutch giant, with its signature yellow and red branding seen all over Europe’s gas stations, is valued at $211 billion this year, up nearly 40% over the year and more. than double the value of second-placed Volkswagen AG.

In May, Shell reported its highest-ever quarterly profit for the first three months of 2022 at $9.13 billion, following a sharp rise in oil prices exacerbated by the Russian invasion of Ukraine in February and the punitive sanctions regime imposed on Russia thereafter. set. After Shell dropped to 324 on the list of 2000 publicly traded companies last year, Shell has shaken off the pandemic blues and returned to 16th place globally by 2022.

Second in Europe, Volkswagen AG, the famous German auto giant that produces some of the best-known names in the world of motoring – Porsche, Audi, Lamborghini, Bentley – has lost more than $60 billion in value in the past 12 months. Automakers such as Volkswagen have cut production, in part thanks to a severe global chip shortage and the ongoing fallout from the diesel emissions scandal, which has seen its share price plunge about 30% since the list’s publication last year.

Next on the list is Total SA. Total, another European oil and gas giant, has risen alongside Shell for many of the same reasons, becoming the 344th company on the list last year. Forbes’ Global 2000 shot into the top 30 (29) this year. Aside from oil, German insurance giant Allianz and Britain’s largest bank HSBC round out the top five.

Since 2003, Forbes’ Global 2000 list measured the world’s largest publicly traded companies in terms of four equally weighted metrics: assets, market value, revenue, and profit. This year’s list was compiled from FactSet Research data, and our market value calculation is based on the April 22, 2022 closing prices. All figures are consolidated and in US dollars.

In terms of large companies and geography, the three dominant economic powers of Europe – Germany, France and the UK – Germany ranks 52 companies; France has 54; the UK has 57.

While last year’s list was colored by the coronavirus pandemic and changes in the business environment, this year’s power of gasoline in the wake of Russia’s invasion of Ukraine underscores some of the most notable changes.

While Russian billionaires have lost a significant percentage of their wealth since the invasion of Ukraine in February, Russian oil and gas giants have weathered the storm better.

Russian giant Gazprom has moved up the list by more than 300 places and is now back in the top 50 (49). While Rosneft remains in the top 100 and LukOil also climbs more than 300 places on the list.

The world’s oil giant is head and shoulders above the competition, but Saudi Arabian Oil Company (Saudi Aramco) is now third on the list Forbes’ Global 2000 list valued north of $2 trillion.