Saudi Aramco profits drop in first quarter as uncertainty rises
Aramco had expected to declare total dividends of US$85.4 billion in 2025, down sharply from last year’s payout of over US$124 billion
Saudi oil giant Aramco, a long-time cash cow for the kingdom, reported a 4.6 per cent drop in first-quarter profit on Sunday due to lower sales and higher operating costs as economic uncertainty hit crude markets.
The world’s top oil exporter reported net profit of 97.54 billion riyals (US$26.01 billion) in the three months ended March 31, which beat a company-provided median estimate from 16 analysts of US$25.36 billion.
The shares were up 0.64 per cent to 25.00 riyals as of 0754GMT, though down 10.9 per cent so far this year.
Aramco confirmed total dividends of $21.36 billion for the first quarter, $219 million of which was performance-linked dividends, a mechanism introduced after a windfall from oil prices in 2022 following Russia’s invasion of Ukraine.
Saudi Arabia for decades has relied on Aramco’s generous payouts, which also include royalties and taxes, to fuel its growth. Oil generated 62 per cent of government revenue last year and the International Monetary Fund has estimated Saudi Arabia needs oil at US$92.3 this year to balance its budget.
The results were released before US President Donald Trump’s visit to the kingdom on Tuesday. His trade war with China has spooked global markets and sent crude prices tumbling amid fears of a global economic slowdown.