Saudi oil giant Aramco announces first-quarter profits of $26Bn, down 4.6% from 2024

In Dubai, United Arab Emirates, the state-owned oil giant Aramco of Saudi Arabia announced a first-quarter profit of $26 billion, which is a 4.6% decrease compared to the previous year due to the decline in global oil prices affecting the kingdom’s extensive development plans. The company, also known as the Saudi Arabian Oil Co., disclosed revenues of $108.1 billion for the quarter in a filing on Riyadh’s Tadawul stock exchange. This is slightly lower than the $107.2 billion in revenues and $27.2 billion in profits reported during the same quarter last year.

Saudi Arabia has committed to investing $600 billion in the U.S. during President Donald Trump’s term. Trump, who is scheduled to arrive in Riyadh on Tuesday for his first official foreign trip since becoming president, expressed interest in increasing this amount to around $1 trillion. Meanwhile, Crown Prince Mohammed bin Salman is aiming to develop a $500 billion project to construct Neom, a futuristic city in the desert along the Red Sea. The country will also require new stadiums and infrastructure costing tens of billions of dollars by 2034, when Saudi Arabia will host the World Cup.

As the OPEC+ alliance boosts oil production, Aramco’s first-quarter results have been announced. The oil cartel agreed to increase output by 411,000 barrels per day next month amidst uncertainty driven by U.S. tariffs affecting Middle Eastern markets. With declining oil prices, Saudi Arabia may need to borrow or utilize reserve funds to support the crown prince’s ambitious objectives.

Aramco’s stock traded at over $6 per share on Thursday, down from approximately $8 last year, reflecting the oil price fluctuations. The company’s President and CEO, Amin H. Nasser, noted that economic uncertainty in the first quarter of 2025 influenced global energy markets. Benchmark Brent crude traded at over $63 per barrel on Friday, a decrease from highs of over $80 in the previous year.

With a market value exceeding $1.6 trillion, Aramco ranks as the sixth wealthiest company globally, following Microsoft, Apple, NVIDIA, Amazon, and Alphabet, the parent company of Google. Analysts view Aramco as a leading indicator in the global oil markets. Although only a portion of Aramco trades on the Tadawul, the majority of the company is owned by the Saudi Arabian government, contributing to national expenditures and enhancing the wealth of the Al Saud royal family.