The profits of Saudi Oil Giant Aramco fell in the first quarter 4.6% due to low sales and high operating costs.
The company, the world’s largest oil exporter, added that it had achieved a net income of 97.54 billion riyals (26.01 billion dollars) in the three months ending March 31.
This exceeds an average that the company provided for estimates of 16 analysts at 25.36 billion dollars.
Profit distributions
Aramco confirmed the total profit distributions that it set earlier and amounting to 21.36 billion dollars for the first quarter, of which 219 million dollars related to performance, a mechanism that was created after unexpected gains from oil prices in 2022 after the outbreak of the Russian -Ukrainian war.
For a long time, Saudi Aramco is one of the main sources of the Kingdom’s revenues, and oil constituted 62% of the government’s revenues last year, and the International Monetary Fund estimates that Saudi Arabia needs the price of oil to $ 92.3 a barrel this year to achieve balance in its budget.
Aramco’s results were issued before the visit of US President Donald Trump to the Kingdom next Tuesday, and the American -Chinese trade war sparked global markets and caused crude oil prices to decline, amid fears of global economic slowdown.
Brent crude has declined a sharp decline since its highest level this year reached $ 82.03 in January, and recorded $ 63.91 a barrel upon settlement on Friday.
Aramco announced in March that it expects to announce a total profit distributions of $ 85.4 billion in 2025, a sharp decrease from last year’s distributions that exceeded $ 124 billion, which relied on the profits of 2023 and 2024.
Performing dividends, which amounted to 43.1 billion dollars last year, were reduced by about 98% with free cash flows.
The Saudi government directly has approximately 81.5% of Aramco, while the Public Investment Fund, the sovereign wealth fund, controls a 16% stake, and the government depends on revenues from the group to invest in other sectors in its attempt to diversify the economy away from oil.
Diversification efforts include building or renewing 15 stadiums for the 2034 FIFA World Cup, which is the most prominent event in a number of major events that the Kingdom will host in the coming years.
Reuters quoted sources – last November – that with low oil prices, the Kingdom has reduced some high aspirations to give priority to complete basic projects to host global sporting events over the next decade in light of the high costs.
Free cash flows reached $ 19.2 billion in the first quarter, a decrease of 15.8% from last year.
Global trade changes
“The global energy markets were affected in the first quarter of 2025 with factors related to changes in the field of global trade, which caused a state of economic uncertainty and affected oil prices.”
He continued, “such periods also highlight the importance of flexibility and discipline in capital planning and implementation, and the continuation of our strategy, which is characterized by a long -term look. During the times that witness fluctuations, the distinction of Saudi Aramco appears through its financial performance, as well as its basic sustainable and increasing profits.”
Capital expenses were just over $ 12.5 billion in the first quarter, an increase of 15.9% over last year.
Aramco has set its capital investments, which include capital expenditures and external investments, by between 52 and 58 billion dollars, and capital expenditures amounted to 50.4 billion dollars last year.
