Business

Aramco Posts Net Profit of $22.6 Billion in Q2

Lower revenue and weaker oil prices have impacted the earnings of Saudi Arabia’s Aramco, which is the world’s biggest oil exporter, as its net profit came down by 22% in Q2, the 10th consecutive quarter decline.

Announcing the second quarter and first have financial results on Tuesday, Aramco said that the net profit in the three months ended June declined to $22.6 billion from $29.06 billion from the previous quarter.

The adjusted net income was $24.5 billion for the second quarter and $50.9 billion for the first six months of this year. Cash flow from operating activities stood at $27.5 billion and $59.3 billion while the free cash flow was $15.2 billion and $34.4 billion for the same period respectively.

Aramco Board has declared Q2 2025 base dividend of $21.1 billion and performance-linked dividend of $0.2 billion, to be paid in the third quarter.

Aramco maintained reliable supply of 100% in the first six months and maintained a strong track record of consistency and stability, while progress at Berri, Marjan and Zuluf crude oil increments, and Jafurah Gas Plant was on track. The company also brought Phase one of Dammam development project brought onstream.

Global retail momentum continued with introduction of premium fuel lines in Chile and Pakistan and Power purchase agreements were signed to develop new renewables projects, capitaliing on the Kingdom’s advantaged solar and wind resources.

Aramco also said that there was a strong global demand for $5 billion bond issuance highlights investor confidence in the company’s strong financial position, resilience and long-term strategy.

Robust Profitability

Commenting on the results, Aramco President & CEO Amin H Nasser said that 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, the company continued to supply energy with exceptional reliability to our customers, both domestically and around the world, he said.

“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,” he said.

Aramco continued 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, he added.

Meanwhile, Agence France-Presse reported that Aramco’s falling revenues came as Saudi Arabia has been pursuing a costly revamp aimed at reducing its reliance on oil and pivoting towards tourism and business.

Since a high point of nearly $2.4 trillion in 2022, when oil prices soared following Russia’s invasion of Ukraine, Aramco has lost more than $800 billion in market value. Oil prices, currently around $70 a barrel, have remained low despite tensions roiling the Middle East, including the short-lived Israel-Iran war in June, the AFP report said.

Global Business Magazine

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