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  Saudi Aramco profits decline by 22%

  5 August 2025

  Saudi Aramco has announced a net income of $22.67bn for the second quarter of 2025, a 22% decline compared to the same period last year. The Saudi energy giant attributed the tenth consecutive quarterly drop in profit to a low oil price environment, as well as global economic and geopolitical headwinds.

  Global crude benchmark Brent crude has been on a largely downward trajectory since a 2025 high of $82.03 in January. Brent was trading around $68.5 a barrel as of 1pm GST on 5 August.

  For the first half of the year, Aramco registered a profit of $48.68bn, a year-on-year decline of 13.6%.

  “Aramco’s resilience was proven once again in the first half of 2025 with robust profitability, consistent shareholder distributions and disciplined capital allocation. Despite geopolitical headwinds, we continued to supply energy with exceptional reliability to our customers, both domestically and around the world,” Amin Nasser, Aramco’s president and CEO, said in his remarks about the financial results.

  “Market fundamentals remain strong and we anticipate oil demand in the second half of 2025 to be more than two million barrels per day higher than the first half. Our long-term strategy is consistent with our belief that hydrocarbons will continue to play a vital role in global energy and chemicals markets, and we are ready to play our part in meeting customer demand over the short and the long term,” Nasser commented.  

  Despite the drop in net income, Aramco’s board declared a base dividend of $21.1bn and performance-linked dividend of $200m for the second quarter of 2025, to be paid in the third quarter of the year.

  Aramco had said in March it expected to declare total dividends of $85.4bn in 2025, down sharply from last year's payout of over $124bn, which was based on 2023 and 2024 earnings. The performance-linked payout, which last year totalled $43.1bn, was slashed roughly 98% as free cash flow dried up.

  Meanwhile, the state enterprise’s free cash flow stood at $15.2bn in the second quarter of this year, and $34.4bn in the first half.

  The company’s gearing ratio was recorded at 6.5% as at the end of the second quarter, compared to 5.3% at the end of the first quarter.

  Separately, Aramco said its first US dollar-denominated sukuk, or Islamic bond, issuance for 2025, from which it raised $5bn in three separate tranches of five, 10 and 30-year maturities, “highlights investor confidence in Aramco’s strong financial position, resilience and long-term strategy.

  Capital expenditure

  Aramco’s capital expenditure (capex) in the second quarter of 2025 stood at $12.3bn, a marginal year-on-year increase of 1.46%. For the first half of the year, Aramco registered capex of $24.85bn, an increase of 9.5% compared to the same period of last year.

  The company had earlier announced a capital investment guidance in the range of $52bn to $58bn for 2025, excluding around $4bn of project financing.

  “We continue to invest in various initiatives, such as new energies and digital innovation with a focus on AI – aiming to leverage our scale, low cost, and technological advancements for long-term success,” Nasser stated.

  On the operational side, Aramco affirmed that it maintained supply reliability of 100% in the first half of 2025, reflecting a “strong track record of consistency and stability.”

  ALSO READ: Aramco offshore contract awards set to rebound

  The company also said it made progress with the Berri, Marjan and Zuluf crude oil increment projects, while work on the Jafurah unconventional gas development programme is “on track.”

  Aramco also said it commissioned the first phase of the Dammam onshore field development project. The company had earlier expected to bring the project onstream last year, with an initial output of 25,000 barrels a day (b/d), ramping up to 50,000 b/d by 2027.

  On the other hand, Aramco also highlighted the introduction of premium fuel lines in Chile and Pakistan during the first half of the year.

  The Saudi energy giant also signed power purchase agreements to develop new renewable projects during the period, “capitalising on the kingdom’s advantaged solar and wind resources.”

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  Indrajit Sen
• 
  Contractors prepare bids for Safaniya offshore field expansion

  5 August 2025

  

  Contractors within Saudi Aramco’s pool of offshore engineering, procurement, construction and installation (EPCI) service providers are preparing bids for three tenders that represent the next infrastructure expansion phase at the Safaniya offshore oil field development in Saudi Arabia.

  The tenders are numbers 154, 155 and 156 on Aramco’s Contract Release and Purchase Order (CRPO) system. The Saudi energy giant issued these CRPOs to its offshore LTA contractors in February, and set an initial bid submission deadline of 31 July, MEED previously reported.

  Aramco has now extended the bid submission deadline for CRPOs 154, 155 and 156 to 28 August, sources told MEED.

  The brief scope of EPCI work on the three tenders are as follows:

  CRPO 154:

  EPCI of a water injection tie-in platform; two production deck modules (PDMs)/wellhead platforms; associated pipelines; hook-ups; and subsea valve skids

  CRPO 155:

  EPCI of four PDMs; intra-field and main trunklines to shore; and jackets

  CRPO 156:

  EPCI of a 48-inch trunkline covering a distance of 62 kilometres from the Safaniya offshore oilfield to the onshore processing facility; plus hook-ups and associated structures.

  Aramco intends to award the EPCI contracts for CRPOs 154, 155 and 156 in January next year, as per sources.

  Aramco’s LTA pool of offshore service providers comprises the following entities:

  • Saipem (Italy)
  • McDermott International (US)
  • Larsen & Toubro Energy Hydrocarbon (LTEH, India) / Subsea7 (UK)
  • NMDC Energy (UAE)
  • Lamprell (UAE/Saudi Arabia)
  • China Offshore Oil Engineering Company (China)
  • Dynamic Industries (US)
  • Sapura Energy (Malaysia)
  • TechnipFMC (France) / MMHE (Malaysia)
  • Hyundai Heavy Industries (South Korea)

  Aramco renewed its LTAs in April with the following contractors, whose contracts had either lapsed or were close to expiry:

  • Saipem
  • McDermott International
  • Larsen & Toubro Energy Hydrocarbon / Subsea7
  • NMDC Energy
  • Lamprell
  • China Offshore Oil Engineering Company

  Offshore contract awards rebound

  Concerns had grown in Saudi Arabia’s offshore market as EPCI contract awards stalled earlier this year.

  Aramco spent a record $5bn on offshore EPCI contracts in 2024 and was expected to exceed that in 2025. However, it awarded no CRPOs in the first half of the year, fuelling concern among contractors and suppliers.

  In July, Aramco eased speculation by selecting contractors for five CRPOs – numbers 150, 157, 158, 159 and 160 – worth over $3bn. These involve EPCI work and infrastructure upgrades at the Abu Safah, Berri, Manifa, Marjan and Zuluf offshore fields.

  Furthermore, frontrunners have emerged for four more CRPOs that are part of a large-scale project to expand infrastructure at the Zuluf offshore field development. The tenders are CRPOs 145, 146, 147 and 148, and their combined value is estimated to be almost $6bn.

  Although official contracts for these CRPOs have yet to be issued, Aramco is expected to formally award the jobs to the contractors it has selected from its Long-Term Agreement pool within the third quarter.

  When these contract awards take place, Aramco will have almost doubled its capex on offshore projects this year compared to 2024, marking yet another year of robust upstream project spending.

  Furthermore, it is understood that there are at least seven more CRPOs – including CRPOs 154, 155 and 156 – that LTA contractors are preparing bids for.

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  Indrajit Sen
• 
  Tendering begins for Riyadh Expo 2030 infrastructure

  5 August 2025

  Saudi Arabia’s Expo 2030 Riyadh Company (ERC), tasked with delivering the Expo 2030 Riyadh venue, received interest from contractors on 24 July for initial infrastructure works at the project located in the north of Riyadh.

  MEED understands that the expression of interest (EoI) notice was issued on 17 July.

  The infrastructure works covering the construction of main utilities and civil works will be tendered in three packages:

  • Lot 1 covers the main utilities corridor
  • Lot 2 includes the northern cluster of the nature corridor
  • Lot 3 comprises the southern cluster of the nature corridor

  The client is also expected to ask the firms to prequalify for the contracts this month.

  The tendering for the infrastructure package follows ERC receiving bids from firms on 6 July for a contract to build the site offices required for initial construction works at the project.

  In July, US-based engineering firm Bechtel Corporation announced that it had won the project management consultancy deal for the delivery of the Expo 2030 Riyadh masterplan construction works.

  The masterplan for Expo 2030 Riyadh encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, providing direct access to various landmarks within the Saudi capital.

  Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions. This initiative is expected to create opportunities for business and investment growth in the region.

  The expo is forecast to attract over 40 million visitors.

  In June, Saudi sovereign wealth vehicle the Public Investment Fund (PIF) launched ERC as a wholly-owned subsidiary to build and operate facilities for Expo 2030.

  In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”

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• 
  Riyadh announces Prince Faisal bin Bandar road project

  5 August 2025

  Riyadh Municipality announced the Prince Faisal bin Bandar Road development project, which spans 15.5 kilometres (km) in the north of Riyadh.

  The project will comprise six lanes, four service lanes, three intersections and 6,800 parking spaces. 

  It will also have pedestrian and bicycle paths, landscaping and drainage and an irrigation network.

  According to an official statement published on the Saudi Press Agency, the project will start from its intersection with King Salman bin Abdulaziz Road in the south to the Saudi Aramco oil pipeline in the north.

  The project is expected to alleviate the traffic congestion to the north of the capital. Riyadh is significantly investing in developing the road infrastructure in and around the capital to expand the traffic capacity. 

  In February, Saudi Arabia’s Royal Commission for Riyadh City (RCRC) announced plans to develop eight road projects in Riyadh at an estimated cost of over SR8bn ($2bn).

  The projects form part of the second group in the Riyadh Ring Roads and Main Axes development programme.

  The schemes include:

  1. The northern part of the Prince Turki Bin Abdulaziz Al-Awwal Road Development Project, with a length of more than 6 kilometres (km). The scope includes the development of two main intersections, the construction of three bridges and a tunnel.

  2. The middle section of the Al-Thumama Road Axis Development Project. The scheme will cover about 10km and include the development of five main intersections and the construction of 11 bridges and five tunnels.

  3. Imam Abdullah Bin Saud Road Development Project, which will stretch about 9km and include the development of four main intersections, the construction of three bridges and two tunnels.

  4. Dirab Road Development Project will cover 9km and includes the development of two main intersections and the construction of nine bridges.

  5. Imam Muslim Road Development Project, which stretches 12km and includes the development of four main intersections and the construction of four bridges. The project will serve as the future extension of Prince Turki Bin Abdulaziz Al-Awwal Road Axis to the south.

  6. The road network development project surrounding King Abdullah Financial Centre, with a length of 20km. This includes the development of three main intersections and the construction of 19 bridges.

  7. The construction of a bridge at the intersection of King Salman Road in the east with Abu Bakr Al-Siddiq Road in the north.

  8. The first package of engineering modifications for crowded sites in Riyadh, the scope of which includes improving traffic congestion during peak times.

  In August last year, the RCRC confirmed that it had awarded four contracts worth SR13bn ($3.46bn) as part of the first phase of the programme to develop the city’s road network.

  The RCRC said that the programme’s first phase will develop the axis of the main and ring roads to improve traffic movement in the city.

  The RCRC’s major projects include Riyadh Metro, Riyadh Art, Sports Boulevard, King Salman International Park and the Green Riyadh project.

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  Yasir Iqbal
• 
  Bahrain goes to market with first solar IPP project

  4 August 2025

  Register for MEED’s 14-day trial access 

  Bahrain’s Electricity and Water Authority (EWA) will host a market consultation event on 11 August during which it will outline plans for the country's first solar photovoltaic (PV) independent power project (IPP).

  The Belaj Al-Jazaer solar IPP project will be Bahrain’s first grid-connected solar PV power plant developed under a public-private partnership (PPP) framework on a build-own-operate basis. It will be delivered as a long-term concession and is intended to come online by 2027.

  The proposed site covers more than 1 square kilometre, with the private sector responsible for end-to-end development, including financing, design, construction and operation.

  The market consultation event will be held online and will introduce the project to international and regional investors, developers and technical experts.

  Participants will receive a strategic briefing from EWA leadership and the project’s appointed transaction advisers. The local KPMG Fakhro is the financial consultant, the US' WSP Parsons Brinckerhoff is the technical consultant, and the UK's Trowers & Hamlins is the legal consultant.

  EWA is fast-tracking the procurement process, with all bids to undergo preliminary financial and technical assessments before proceeding to detailed evaluation.

  The construction of solar power plants supports Bahrain’s 2060 net-zero carbon emissions target.

  READ MORE: Interview with Bahrain’s Electricity & Water Authority president, Kamal bin Ahmed Mohammed

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  Colin Foreman