With $93.5 Billion in Profit… Aramco Sheds Legacy Burdens to Lead the Future Gas Boom
Saudi Aramco’s Net Profit Declines 12.1% in 2025
Saudi Aramco, the world’s energy giant, reported a 12.1% decline in net profit, down by approximately SAR 48 billion to SAR 350.2 billion ($93.5 billion), compared with SAR 398.4 billion ($106.2 billion) in 2024. The result was below the London Stock Exchange Group’s estimate of approximately $95.6 billion.
The decline was mainly driven by a 7.2% drop in revenue, equivalent to around SAR 130 billion, bringing revenue down to SAR 1,671.2 billion, compared with SAR 1,801.7 billion in 2024.
The company also recorded approximately SAR 32.4 billion in impairment and revaluation losses, including losses related to SABIC’s exit from certain European operations. As a result, operating profit declined to SAR 706.8 billion, compared with SAR 774.7 billion in 2024, a decrease of 8.8%. The operating profit margin fell to 42.3%, compared with 43.0% in 2024.
Key Income Statement Data — 2025 vs. 2024
SAR million | 2025 | 2024 | Change |
|---|---|---|---|
Total revenue | 1,671,200 | 1,801,700 | -7.2% |
Operating profit | 706,800 | 774,600 | -8.8% |
Income before income taxes and zakat | 702,900 | 782,000 | -10.1% |
Net income | 350,200 | 398,400 | -12.1% |
Earnings per share | SAR 1.44 | SAR 1.63 | -11.7% |
Lower Oil Prices Pressure Revenue
Aramco’s 2025 revenue was affected by a 13.7% decline in the average crude oil price, which fell to $69.2 per barrel, compared with $80.2 in 2024.
This decline came despite higher production volumes, with average hydrocarbon production reaching approximately 10.7 million barrels of oil equivalent per day in 2025, compared with 8.9 million barrels per day in 2024.
SABIC Restructuring
2025 could be described as a year of “balance-sheet cleanup” for SABIC and Aramco, as the group recognized significant accounting losses associated with the restructuring and divestment of certain European and American assets.
SABIC moved to exit businesses facing structural pressures and weak profit margins, including petrochemical operations in Europe and engineering thermoplastics businesses in Europe and the Americas.
The combined value of the two transactions was approximately $950 million, or around SAR 3.5 billion.
SABIC recorded approximately SAR 18.3 billion in non-cash impairment losses related to the revaluation of these assets. These losses, combined with operating challenges in the chemicals sector, contributed to SABIC recording an annual net loss of approximately SAR 25.78 billion in 2025.
Since Aramco owns 70% of SABIC, these results were reflected in Aramco’s consolidated financial statements.
Although the restructuring affected Aramco’s short-term earnings, the divestments are expected to improve the group’s long-term operational structure by reducing exposure to higher-cost European markets and allowing greater focus on growth markets such as China and India, as well as oil-to-chemicals projects.
Strong Operating Efficiency
Despite the challenging market environment, Aramco maintained strong operating efficiency. Average upstream capital expenditure was approximately $8 per barrel of oil equivalent, while the company’s production costs remained highly competitive.
Aramco also generated cash proceeds from the sale of a 49% non-controlling interest in Jafurah Midstream, while retaining a 51% majority stake. The transaction helped support the company’s liquidity and maintain a strong cash balance.
Jafurah Gas Field
The Jafurah unconventional gas field is one of Aramco’s most important strategic growth projects.
By 2030, the field is targeted to produce approximately:
- 2 billion standard cubic feet of sales gas per day
- 420 million cubic feet of ethane per day
- Approximately 630,000 barrels per day of natural gas liquids and condensates
Aramco’s Financial Position
By the end of 2025, Aramco’s financial position remained strong. Gearing declined to 3.8%, compared with 4.5% at the end of 2024, reflecting the company’s continued financial strength despite volatility in energy markets.
The company’s total shareholder distributions during 2025 amounted to approximately SAR 320.4 billion ($85.5 billion), compared with around SAR 465 billion in 2024.
Aramco also announced a SAR 11 billion share buyback program, to be implemented over 18 months. Share buybacks can return excess cash to shareholders and potentially support earnings per share by reducing the number of outstanding shares.
Capital Expenditure
Aramco’s total capital expenditure reached approximately $50.8 billion in 2025, compared with $50.4 billion in 2024.
The company continued progressing toward its plan to increase sales gas production capacity by approximately 80% by 2030, compared with 2021 levels, supported by the start-up of Jafurah and operations at the Tanajib Gas Plant.
The company also advanced projects to increase crude oil production capacity at the Marjan and Berri fields, strengthening its ability to respond to changes in market conditions.
Saudi Oil Production
In August 2025, eight OPEC+ countries—Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman—agreed to increase oil production by 548,000 barrels per day starting in September 2025.
Saudi Arabia subsequently increased its production, reaching approximately 10.08 million barrels per day in December 2025, compared with 8.94 million barrels per day in January.
Saudi Oil and Gas Reserves
Saudi Arabia’s total oil and gas reserves increased by approximately 0.2% in 2025, reaching a record level of around 342 billion barrels of oil equivalent.
The increase was supported by continued growth in oil and natural gas reserves and new discoveries. During 2025, the Ministry of Energy announced the discovery of 14 oil and natural gas fields and reservoirs in the Eastern Province and the Empty Quarter.
Comparison with Global Oil Majors
Aramco continued to deliver one of the strongest financial performances among the world’s major oil companies in 2025.
However, its results followed the broader industry trend as global crude oil prices declined sharply. The average spot price of Brent crude fell by approximately 14.3% in 2025 to $69.04 per barrel, compared with $80.56 in 2024.
Geopolitical Risks and the Strait of Hormuz
Aramco faced significant geopolitical challenges amid disruptions to shipping through the Strait of Hormuz.
The company activated contingency plans to maintain supplies to customers, including greater reliance on its strategic East-West Pipeline, which has a capacity of approximately 7 million barrels per day.
Aramco also benefits from substantial storage capacity and approximately 2 million barrels per day of spare production capacity, providing additional flexibility during market disruptions.
About Aramco
Aramco is a major source of revenue for Saudi Arabia, with the government relying heavily on the energy sector. The Saudi government directly owns approximately 81.5% of the company, while the Public Investment Fund owns approximately 16%.
Overall, Aramco’s 2025 results reflect the combined impact of lower oil prices, weaker revenues, and restructuring charges, while the company continues to maintain a strong balance sheet, low gearing, substantial cash generation, and significant investment in gas, upstream, and downstream growth projects.