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Saudi Aramco profits decline by 22%

5 August 2025

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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 10th 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 2 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 a 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, the firm 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 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".

In addition, Aramco 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 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

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