Trending 
Saudi oil giant Aramco has reported a 4.6% decline in net profits for the first quarter of 2025, citing reduced sales revenue and higher operating costs.
According to a statement published by the Saudi stock exchange, the drop was attributed to “lower revenue and other income related to sales as well as higher operating costs.”
Economic Uncertainty Impacts Oil Prices
Aramco President and CEO, Amin H. Nasser, said:
“Global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices.”
Net income for Q1 2025 was 97.54 billion riyals (£20.5 billion), down from 102.27 billion riyals (£21.5 billion) in the same period last year.
Despite the decline, Nasser praised the company’s performance, stating:
“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.”
Production Below Capacity
Saudi Arabia remains the world’s largest exporter of crude oil and is currently producing around 9.2 million barrels per day — well below its full capacity of 12 million barrels, according to Riyadh-based think tank Jadwa Saudi.
Market Pressures and OPEC+ Decision
Oil prices have recently declined sharply amid concerns that US tariffs under President Donald Trump could reduce global demand and disrupt international trade.
In addition, the recent decision by eight OPEC+ member states to boost oil production in June has added downward pressure on prices. Under this new plan, Saudi Arabia, Russia, and six others will collectively increase production by 411,000 barrels per day—substantially more than the original plan’s 137,000.
Abu Dhabi-based energy analyst Ibrahim Abdul Mohsen explained:
“The market has been under pressure, and its performance began to decline in Q1 2025, due to weak supply and demand fundamentals: slowing Chinese demand, the US trade war, and OPEC+ production policy shifts.”
Vision 2030 and Fiscal Outlook
The Saudi government, which holds 81.5% of Aramco shares, heavily relies on the company’s revenues to fund its ambitious “Vision 2030” development plans led by Crown Prince Mohammed bin Salman.
These include NEOM — a £400 billion futuristic mega-city — the 2034 FIFA World Cup, and a new international airport in Riyadh.
Although Aramco recorded historic profits in 2022 after Russia’s invasion of Ukraine sent oil prices soaring, earnings have since tapered off with the broader market downturn.
Saudi Arabia is now projecting a 2.3% budget deficit in 2025, with deficits expected to persist through to 2027, according to the finance ministry.
