Saudi Arabian Oil Company disclosed net profit of $22.67 billion for the second quarter of 2025, marking a 22 per cent year‐on‐year decline and extending the downturn to its tenth straight quarter. The drop coincided with a missing of the $23.7 billion analyst consensus estimate, underscoring pressure from weakening crude prices and softer demand.

Revenue downturn was central to this performance. Total income fell to $101.02 billion, down 11 per cent from the same quarter a year earlier, driven by lower crude, refined and chemical product prices, despite an uptick in volumes sold. The average realised crude price slipped to $66.7 per barrel, a sharp decline from $85.7 in Q2 2024 and $76.3 in Q1 2025.

Adjusted net income, which filters out one‐off items like impairments and gains or losses on disposals, stood at approximately $24.54 billion, reflecting a 14 per cent drop year‐on‐year.

Free cash flow also came under pressure, falling nearly 20 per cent to $15.2 billion for the quarter-narrowly above the $21.36 billion dividend paid to the state, indicating tighter financial margins.

At the same time, indebtedness continues to rise. Total borrowing climbed to $92.9 billion, up from $74.4 billion a year earlier, pushing gearing to 6.5 per cent from negative territory in 2024.

Despite the pressures, the company confirmed a base dividend of $21.1 billion and a performance‐linked dividend of $200 million, both slated for third‐quarter payment. Full‐year dividend guidance remains sizeable at $85.4 billion, though down substantially from over $124 billion in 2024, largely due to deep cuts in the performance‐linked component.

Saudi Aramco is also exploring financial restructuring to bolster liquidity and focus investment on higher‐yield assets. CFO Ziad Al‐Murshed flagged plans to divest low‐return infrastructure and is close to securing about $10 billion in funding led by BlackRock. The firm may also consider offloading up to five gas‐powered power plants for as much as $4 billion.

Operationally, the company maintained supply reliability at 100 per cent and continues progress on key upstream projects including phases of Berri, Marjan, Zuluf, the Jafurah gas plant and the first phase of Dammam development-which commenced this year.

Aramco's leadership is emphasizing strategic resilience. President & CEO Amin H. Nasser reaffirmed confidence in market fundamentals, citing an expected increase in global oil demand exceeding 2 million barrels per day in the second half of 2025.

The company also highlighted its expansion into new energies and digital innovation-including AI-alongside its conventional hydrocarbon portfolio as a key element of its long‐term strategy.

MENAFN28082025000152002308ID1109987103