{"id":48044,"date":"2026-03-10T11:34:56","date_gmt":"2026-03-10T11:34:56","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/03\/10\/saudi-aramcos-profit-falls-12-in-2025-announces-3b-buyback\/"},"modified":"2026-03-10T11:34:56","modified_gmt":"2026-03-10T11:34:56","slug":"saudi-aramcos-profit-falls-12-in-2025-announces-3b-buyback","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/03\/10\/saudi-aramcos-profit-falls-12-in-2025-announces-3b-buyback\/","title":{"rendered":"Saudi Aramco’s profit falls 12% in 2025, announces $3B buyback"},"content":{"rendered":"
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Saudi Arabia’s Aramco, the world’s largest oil exporter, announced its first-ever share buyback plan of up to $3 billion, even as the company reported a 12% drop in annual profit in 2025, primarily attributed to lower crude prices.<\/p>\n

The company previously rewarded shareholders primarily through substantial dividend payouts. <\/p>\n

However, a buyback program is now slated to be conducted over the next 18 months, according to an official press release<\/a>.<\/p>\n

The company posted a net income of $93.4 billion for 2025 compared to $106.2 billion in the previous year. <\/p>\n

Earnings results and dividends<\/h2>\n

Net profit for the fourth quarter fell 20.5% to almost $17.8 billion due to increased operating costs. <\/p>\n

This marks the 12th consecutive quarter of a year-on-year profit decline.<\/p>\n

Aramco approved a base dividend payment of $21.89 billion for the fourth quarter, a 3.5% year-on-year increase. <\/p>\n

It also paid $219 million in performance-linked dividends.\u00a0<\/p>\n

As a vital source of income for the Saudi state, the company remains one of the world’s largest dividend payers.<\/p>\n

Despite a drop in crude prices in 2025, the company prioritised payouts, with total shareholder distributions for the year reaching $85.5 billion.<\/p>\n

This mechanism for performance-linked dividends was introduced after the significant profits in 2022, following the Ukraine war, and is calculated based on free cash flow.<\/p>\n

\u201cThis enabled a 3.5% increase to our base dividend, reinforcing our focus on delivering sustainable and progressive shareholder returns,\u201d Aramco President and Chief Executive Officer Amin H. Nasser said. <\/p>\n

Meanwhile, despite a year marked by oil-price volatility, the Saudi state oil giant announced a full-year adjusted net income of $104.7 billion, characterising the result as “robust growth.”<\/p>\n

Aramco’s performance in 2025 reflected a decline, largely driven by weaker prices for crude oil, refined products, and chemicals. <\/p>\n

Total revenue fell 7.2% to $415.8 billion. Consequently, the total dividends paid for the year were $85.5 billion, a decrease from $124 billion in 2024.<\/p>\n

Despite the drop in revenue, the company’s gearing ratio, a measure of indebtedness, improved, falling to 3.8% at the end of 2025 from 4.5% at the end of 2024.<\/p>\n

As a significant contributor to the Saudi economy, Aramco remains a crucial source of government revenue, providing over half of the state’s income, which is heavily reliant on fossil fuels. <\/p>\n

The Saudi state maintains substantial ownership, directly holding nearly 81.5% of the company, with its sovereign investor, the Public Investment Fund, holding an additional 16%.<\/p>\n

Aramco’s balance sheet<\/h2>\n

Aramco’s operating cash flow reached $136.2 billion last year, a result the company attributed to consistent production and robust performance in its downstream business. <\/p>\n

The total capital investments for the year amounted to $52.2 billion. This figure aligned with the company’s guidance and represented a slight decrease compared to 2024 investment levels.<\/p>\n

\u201cOur disciplined capital allocation, combined with lower\u2011cost and highly reliable operations, drove strong financial performance in a year marked by price volatility,\u201d Nasser said in the earnings release.<\/p>\n

Global crude oil prices softened in 2025, dropping to $69.2 per barrel from $80.2 in 2024, a change driven by an increase in global supply. <\/p>\n

Source: Saudi Aramco<\/a><\/figcaption><\/figure>\n

However, recent escalations in the Middle East conflict have caused a sharp spike, pushing crude prices to nearly $120 per barrel.<\/p>\n

Catastrophic consequence for oil markets<\/h2>\n

The CEO of Saudi oil giant Aramco, Amin Nasser, has warned that the Iran war poses a risk of “catastrophic consequences” for the global oil market. <\/p>\n

Speaking on an earnings call on Tuesday, Nasser stated that the conflict has triggered “a severe chain reaction” and “a drastic domino effect.” <\/p>\n

He emphasised that the impact extends beyond shipping, affecting sectors such as aviation, agriculture, and the automotive industry.<\/p>\n

\u201cThere will be catastrophic consequences for the world\u2019s oil market. The longer the disruption goes on and the more drastic the consequences for the global economy,\u201d he said.\u00a0<\/p>\n

He added that it is one of the biggest threats so far for the oil and gas industry.<\/p>\n

Last week, Aramco\u2019s Ras Tanura refinery was struck by a projectile. <\/p>\n

This incident occurred amidst widespread drone and missile attacks launched by Iran against Gulf states, which Iran claimed were in response to US and Israeli strikes against it.<\/p>\n

Supply fears initially caused oil prices to surge. <\/p>\n

However, prices dropped<\/a> after US President Donald Trump warned that the US would retaliate “twenty times harder” should Iran attempt to stop the flow of oil through the Strait of Hormuz.<\/p>\n

Also, bringing relief to the oil market was Trump\u2019s comments that the war would be over soon. <\/p>\n

At the time of writing, the price of West Texas Intermediate crude was at $87.56 per barrel, down 7.6%, while Brent was 7.7% lower at $91.38 a barrel. <\/p>\n

The post Saudi Aramco's profit falls 12% in 2025, announces $3B buyback<\/a> appeared first on Invezz<\/a><\/p>\n

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Saudi Arabia’s Aramco, the world’s largest oil exporter, announced its first-ever share buyback plan of up to $3 billion, even as the company reported a 12% drop in annual profit in 2025, primarily attributed to lower crude prices. The company previously rewarded shareholders primarily through substantial dividend payouts. However, a buyback program is now slated <\/p>\n","protected":false},"author":1,"featured_media":48045,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-48044","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/48044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=48044"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/48044\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/48045"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=48044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=48044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=48044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}