Aramco’s profits Take Hit in Q1-2025

Uncertainty in the global oil market prices coupled with lower production, high operating costs and sales impacted the profits of Saudi Arabia’s Aramco, the world’s biggest oil and gas company, which were down 4.6% y-o-y in the first quarter of this year.

The results for Q1, which were announced on Sunday, showed that the company’s net income stood at $26 billion compared with $27.3 billion for the corresponding period last year. However, the figures for Q1-2025 were slightly higher than the expectations of analysts.

The cash flow from operating activities were $31.7 billion versus $33.6 billion in Q1-2024 and the free cash flow was $19.2 billion as against $22.8 billion for the same period last year.

The Board of Directors have declared a base dividend of $21.1 billion, up 4.2% y-o-y and performance-linked dividend of $0.2 billion, which will be paid in the second quarter, the company said.

It may be recalled that Aramco has announced plans to distribute $85.4 billion in dividends this year—down about 30% from $124.3 billion in 2024, thus reflecting a shift in financial priorities.

The capital expenditure of $12.5 billion in Q1 will support the long-term strategic growth as the Saudi Ministry of Energy announced new oil and gas discoveries reflects sustained advantage in exploration.

The company also signed agreements to acquire 25% equity stake in Unioil Petroleum Philippines which is expected to support strategic growth in downstream value chain, and completed acquisition of 50% equity interest in Blue Hydrogen Industrial Gases Company to capitalise on emerging opportunities for lower-carbon energy.

Trade Dynamics Hit Energy Markets

Aramco President & CEO Amin H Nasser said that global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices.

In this context, Aramco’s robust financial performance once again demonstrated its unique scale, its reliability and flexibility, the value of its low-cost operations, and its emphasis on efficiency and advanced technology.

He said that such periods also highlight the importance of disciplined capital planning and execution while we continue to take a long-term view. In volatile times Aramco’s resilience underpins both financial performance and sustainable and progressive base dividend.  

“With all forms of energy key to meeting energy demand, we continue to advance our growth strategy across Upstream, Downstream and New Energies, while working to reduce emissions. Our ambition is reflected in milestones already announced in 2025, including progress towards our gas production growth target, our global retail expansion, the advancement of our petrochemicals strategy, headway in blue hydrogen business development, and further innovation in carbon capture,” he added.

Saudi Arabia remains the world’s largest crude oil exporter and currently produces around 9.2 million barrels per day (bpd) – below its full production capacity of 12 million barrels, according to Jadwa Saudi, a Riyadh-based think tank.