S'abonner

Aramco’s net profit drops 4.6% in Q1 2025

Lower sales revenues and rising operational costs impacted Aramco’s results, while the company remains central to Saudi Arabia’s economic strategy.

Share:

Saudi Arabian Oil Company (Aramco) reported a 4.6% decline in net profit for the first quarter of 2025, totalling SAR97.54bn ($26.01bn), compared to SAR102.27bn ($27.27bn) in the same period of 2024. The drop comes amid lower revenue from sales and rising operational expenses.

According to a statement published by the Saudi stock exchange and relayed by Agence France-Presse, the decrease in profits was due to “lower revenues and other sales-related income, as well as higher operating expenses.” Aramco remains one of the financial cornerstones of the Kingdom’s economy, where the state owns 81.5% of the company’s capital.

Cost pressure and global trade tensions

Aramco President and Chief Executive Officer Amin H. Nasser stated that “global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices.” Oil prices have come under significant pressure, particularly due to concerns surrounding US trade policies and their potential impact on global demand.

A strategic setback for Vision 2030

Aramco’s changing financial performance comes as Saudi Arabia increases its investments under the Vision 2030 programme, launched by Crown Prince Mohammed bin Salman. This plan aims to diversify the Kingdom’s economy to reduce its reliance on oil, with projects such as the $500bn NEOM megacity, a bid to host the 2034 World Cup, and the construction of a new international airport in Riyadh.

In 2022, Aramco reported record profits following the surge in oil prices driven by Russia’s invasion of Ukraine, allowing Saudi Arabia to post a budget surplus for the first time in nearly a decade. However, the downward trend in oil prices since 2023 has reversed that trajectory.

Budget forecasts and structural dependence

In September, the Saudi Ministry of Finance announced a projected budget deficit of 2.3% of gross domestic product in 2025, expecting the deficit to continue until 2027. In this context, the decline in Aramco’s revenues raises significant budgetary challenges for financing the country’s development strategy.

“The impact of global economic volatility on our results illustrates the importance of our long-term approach,” said Amin H. Nasser, as quoted by BGNES on May 11.

  • Populaires ​
European Union finalises agreement to lower Russian oil price cap
Warsaw seeks EU green light for $49bn nuclear project
wpd completes the acquisition of Calycé’s wind activity and strengthens its presence in France
ACWA Power, Badeel and SAPCO to invest $8.3bn for 15,000 MW of renewables in Saudi Arabia
Shell focuses on African offshore and revives upstream amid challenging environment
Trump to impose 100% tariffs on buyers of Russian oil
US Senator Lindsey Graham announced that President Donald Trump plans to impose 100% tariffs on countries purchasing Russian oil, including China, India, and Brazil.
Rosneft denounces EU sanctions against Nayara Energy as illegitimate
Russian oil group Rosneft rejects EU sanctions targeting Nayara Energy, in which it holds a 49.13% stake, citing a breach of international law and a threat to India’s energy security.
Chevron completes $60bn acquisition of Hess after favourable arbitration
Chevron finalised the acquisition of Hess for nearly $60bn, after winning an arbitration case against ExxonMobil over pre-emption rights in Guyana.
The oil and gas fishing market targets USD4.36bn by 2031, driven by offshore drilling
The expansion of the global oil and gas fishing market is accelerating on the back of offshore projects, with annual growth estimated at 5.7% according to The Insight Partners.
Schlumberger divests assets to secure approval from Canada’s Competition Bureau
The Competition Bureau has required Schlumberger to divest major assets to finalise the acquisition of ChampionX, thereby reducing the risks of market concentration in Canada’s oilfield services sector. —
Saturn Oil & Gas buys back over 1.6 million shares for C$3.46mn in Canada
Saturn Oil & Gas Inc. confirms the acquisition of 1,608,182 common shares for a total amount of USD3.46mn, as part of its public buyback offer in Canada, resulting in a reduction of its free float.
OPEC Cuts Forecasts but Anticipates Rising Oil Demand
OPEC slightly adjusts its production forecasts for 2025-2026 while projecting stable global demand growth, leaving OPEC+ significant room to increase supply without destabilizing global oil markets.
European Union struggles to agree on new Russian oil price cap
Talks between European Union member states stall on the adoption of the eighteenth sanctions package targeting Russian oil, due to ongoing disagreements over the proposed price ceiling.
Drone attacks disrupt five oil fields in Iraqi Kurdistan within one week
Three new oil fields in Iraqi Kurdistan have been targeted by explosive drones, bringing the number of affected sites in this strategic region to five in one week, according to local authorities.
ShaMaran suspends production after explosion at HKN-operated site
An explosion at 07:00 at an HKN Energy facility forced ShaMaran Petroleum to shut the Sarsang field while an inquiry determines damage and the impact on regional exports.
Tamarack Valley refinances USD 237 mn in bond debt and extends its maturities
The Canadian producer issues USD 237 mn in senior notes at 6.875 % to repay bank debt, repurchase USD 73 mn of 2027 notes and push most of its maturity schedule to 2030.
BP raises second-quarter production forecast driven by US shale growth
BP revised upwards its production forecast for the second quarter of 2025, citing stronger-than-expected results from its US shale unit. However, lower oil prices and refinery maintenance shutdowns weighed on overall results.
Serbia seeks new US sanctions waiver for NIS amid geopolitical tensions with Russia
Belgrade is engaged in complex negotiations with Washington to obtain a fifth extension of sanctions relief for the Serbian oil company NIS, which is majority-owned by Russian groups.
Backbone Infrastructure Nigeria Limited launches $15bn refinery project in Nigeria
Backbone Infrastructure Nigeria Limited is investing $15bn to develop a 500,000-barrel-per-day oil refinery in Ondo State, a major project aimed at boosting Nigeria’s refining capacity.
South African state exposes public finances to uncertain Sapref refinery buyout
The Central Energy Fund’s takeover of the Sapref refinery introduces major financial risks for South Africa, with the facility still offline and no clear restart strategy released so far.
PetroTal increases production by 15% in Q2 2025 and strengthens liquidity
PetroTal Corp. records production growth in the second quarter of 2025, improves its cash position and continues replacing key equipment at its main oil sites in Peru.
Bomb attack halts operations on Colombia’s Caño Limón-Coveñas oil pipeline
An explosion caused by a homemade explosive device in northeastern Colombia has forced Cenit, a subsidiary of Ecopetrol, to temporarily suspend operations on the strategic Caño Limón-Coveñas pipeline, crucial to the country's oil supply.
Occidental Petroleum reduces production in the Gulf of Mexico in the second quarter
Occidental Petroleum announces a decrease in its production in the Gulf of Mexico in the second quarter, citing third-party constraints, extended maintenance, and scheduling delays.
Trump’s New Measures Open Oil Access, Real Impact Remains Uncertain
U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum raises US$2mn through convertible debentures to support operations
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING