Saudi Aramco reported a decline in net profit for 2025, citing a significant drop in crude oil and refined product prices over the past year.
The state-owned oil company’s YoY profit fell by 12% to SAR 348B ($93B), down from SAR 394B ($105B). This fall exceeded market expectations, largely due to lower-than-anticipated earnings in Q4.
Q4 saw a net profit of $18.5B: a decrease of $4.6B YoY on Q4 in FY24.
Oversupply in FY25
Overall revenue also saw a decline, dropping from SAR 1.64T ($437B) to SAR 1.56T ($416B). The company indicated that while lower oil prices impacted profits, increased oil production helped mitigate the sustained downturn in the market.
The price of Brent crude fell by around $20 throughout FY25, finishing December below $65 a barrel. Yet the ongoing conflict is causing oil prices to spike over $114, on Monday trading, oil fell to $100 per barrel on Tuesday early trading.
Oil Price Speculation
Speculation surrounding potential releases of strategic oil reserves by G7 nations and statements regarding the US’s objectives in the conflict, tempered prices.
A board call is scheduled for Tuesday, where Aramco is expected to provide further insights into its strategy and export capabilities during this tumultuous period.
Supply Side Bottlenecks
The unprecedented disruption has roiled global energy markets, pushing Brent crude futures to their highest levels since the expansion of the war in Ukraine (2022).
While Saudi Arabia has accelerated crude shipments from the Red Sea via the East-West pipeline to Yanbu, the redirected volumes are insufficient to offset the millions of barrels sidelined by the Gulf closure, analysts have said.
European governments and firms are bracing for possible cost-push inflation, if attacks on oil infrastructure, continue.
Stay Up to Date with the Latest Updates at Finance ME!
Analysis: IFC Oman is Carving a Niche in High-Growth Financial Sectors
