Saudi Arabia’s oil giant Aramco reported a net profit of $26 billion for the first quarter of 2025, marking a 4.6% dip from the same period last year. The drop, though not drastic, reflects the ongoing turbulence in global oil markets as economic uncertainty continues to weigh on crude prices.
The Board of Directors declared a base dividend of $21.1 billion reflecting a 4.2% increase from last year and the Capital expenditures reached $12.5 billion for Q1 2025. Aramco also highlighted new oil and gas discoveries announced by the Ministry of Energy, reinforcing the company’s sustained competitive edge in exploration.
On the strategic investment front, Aramco signed definitive agreements to acquire a 25% equity stake in Unioil Petroleum Philippines, supporting its expansion across the downstream value chain. Additionally, it completed the acquisition of a 50% equity interest in Blue Hydrogen Industrial Gases Company, positioning itself to leverage emerging opportunities in the lower-carbon energy sector. The quarter also marked the launch of a CO₂ Direct Air Capture pilot plant, signaling Aramco’s commitment to scaling up innovative technologies aimed at reducing emissions.
Aramco President and CEO Amin H. Nasser attributed the slight downturn to global trade challenges and shifting economic conditions. He said “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 the Company’s unique scale, its reliability and flexibility, the value of its low-cost operations, and its emphasis on efficiency and advanced technology.
“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 our financial performance and our 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.”
Despite the dip, Aramco remains among the world’s most valuable companies, currently holding a market capitalization of over $1.7 trillion.
The OPEC+ alliance recently agreed to increase oil production by 411,000 barrels per day starting next month. While the move is aimed at stabilizing the market, it could impact prices further, possibly leading Saudi Arabia to tap into its reserves or seek borrowing options to support its domestic investments.
Looking beyond Saudi borders, the kingdom has also pledged major investments in the U.S. during President Donald Trump’s term. Trump, who is expected to arrive in Riyadh on Tuesday for his first foreign visit since returning to office, previously stated his goal to raise the investment figure from $600 billion to $1 trillion.
While only a small portion of Aramco shares are publicly traded, the majority remains under government ownership, playing a critical role in funding the country’s expansive development plans and adding to the royal family’s financial resources.
