Shares of Saudi Aramco fell more than 2% in intraday trading on Tuesday after the world's largest oil exporter reported a 12% decline in its 2025 profit, reflecting weaker revenues amid higher global oil supply and broader economic pressures.
For the full year 2025, the Saudi energy giant posted a net profit of $93.4 billion, down from $106.2 billion in 2024. The drop comes as energy markets grapple with increased supply, US tariff policies and global economic uncertainty.
The company's net income for 2025 stood at $93.38 billion, compared with $106.24 billion a year earlier. On an adjusted basis, excluding exceptional items, net income fell 5.1% to $104.65 billion from $110.29 billion in 2024.
Following the results, Aramco's stock slipped as much as 2.2%, touching an intraday low of 26.5 Saudi riyals (SAR).
Also Read: Jim Walker Slams Trumponomics: MAGA Resulted In 2.2% US GDP Growth; World Facing $200-Oil Threat
First-ever share buyback
Alongside the earnings report, Aramco unveiled its first share buyback programme, announcing plans to repurchase up to $3 billion worth of shares over the next 18 months.
Historically, the state-backed company has primarily rewarded investors through its substantial dividend payouts rather than share repurchases.
Fourth-quarter performance and dividends
For the fourth quarter, Aramco reported a net profit of about $17.8 billion, marking a 20.5% year-on-year decline, as higher operating costs weighed on earnings.
Adjusted net income for the quarter came in at $25.1 billion.
Commenting on the results, Aramco President and CEO Amin H. Nasser said the company maintained strong financial resilience despite volatile energy markets.
“Aramco delivered robust growth and strong cash flows in 2025, reinforcing confidence in our strategy.”
He added that disciplined capital allocation and Aramco's low-cost production model helped cushion the impact of price volatility.
“We continue to leverage advanced technologies including AI to enhance efficiency and unlock value across our business. We also continued to maintain our impressive safety track record in 2025, with our lowest total recordable case rate since the IPO.”
Aramco declared a base dividend of $21.1 billion for the fourth quarter, along with $219 million in performance-linked dividends. For the full year, total dividends amounted to $85.5 billion, down from $124 billion in 2024.
Also Read: Iran Offers Path To Peace As Trump Claims War Is Nearing End
Geopolitical tensions rattle oil markets
The earnings announcement comes as energy markets remain highly volatile due to the ongoing conflict involving the United States, Israel and Iran.
The tensions have disrupted oil supply routes and led to sharp swings in crude prices. Iran has reportedly launched attacks on energy infrastructure in the Gulf, including Aramco's Ras Tanura facility, where drone strikes temporarily halted some operations.
The conflict has also intensified risks around the Strait of Hormuz, a crucial maritime corridor through which roughly 20% of global oil supply passes.
However, oil prices eased on Tuesday after Donald Trump suggested the conflict with Iran could end sooner than expected.
Brent crude, which had surged to nearly $120 per barrel on Monday, was trading near $93 per barrel on Tuesday following the remarks, helping stabilise markets after days of extreme volatility.
During an earnings call with reporters, Nasser warned that any prolonged disruption to shipping through the Strait of Hormuz could have serious consequences for global energy markets.
“There would be catastrophic consequences for the world's oil markets and the longer the disruption goes on ... the more drastic the consequences for the global economy.”
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
