Saudi Aramco, the world’s largest oil producer, announced a net profit of $26 billion for the first quarter of 2025, marking a 4.6% decrease compared to the same period in 2024. This decline is attributed to falling global oil prices and increased operational costs.
Financial Highlights
- Net Income: $26.0 billion (Q1 2024: $27.3 billion)
- Revenue: $108.1 billion (up from $107.2 billion in Q1 2024)
- Free Cash Flow: $19.2 billion (down 15.8% year-over-year)
- Capital Expenditure: $12.5 billion (up 15.9% year-over-year)
- Base Dividend: $21.1 billion (up 4.2% year-over-year)
- Performance-Linked Dividend: $0.2 billion
Market Conditions
The decrease in profit is primarily due to a drop in global oil prices. Brent crude, the international benchmark, fell from a high of $82.03 per barrel in January to $63.91 by the end of the quarter. This decline has been influenced by global economic uncertainties and trade tensions.
Strategic Outlook
Despite the profit decline, Aramco continues to invest in its long-term growth. The company increased its capital expenditure to $12.5 billion in Q1 2025, aligning with its projected annual investment plans of $52–$58 billion. These investments support Aramco’s strategic initiatives, including infrastructure development and diversification projects. Reuters
Conclusion
While facing challenges from fluctuating oil prices and global economic conditions, Saudi Aramco maintains a strong financial position. The company’s ongoing investments and strategic planning aim to ensure resilience and sustained growth in the evolving energy market.
