Saudi Aramco reported a decline in second-quarter revenue on Tuesday, attributing the drop to weaker prices for crude oil and refined chemical products, with increased trading volumes providing only partial relief.
The oil giant’s adjusted net income came in at 92.04 billion Saudi riyals ($24.5 billion) for the quarter ended June, slightly ahead of $23.7 billion expected by analyst consensus. Revenue fell to 378.83 billion riyals from 425.71 billion riyals a year earlier.
Capital expenditure edged up to 46.2 billion riyals, compared with 45.5 billion riyals a year ago. Despite subdued crude prices throughout the year—except for a brief surge caused by Middle East tensions—Aramco’s downstream businesses helped offset weaker upstream earnings.
Analysts at RBC noted that capital investments in the first half of 2025 are tracking below Aramco’s annual guidance, and the company could finish the year at the lower end of its range if acquisition activity remains muted. Demand uncertainty, exacerbated by recent U.S. protectionist tariffs, continues to weigh on oil futures.
Looking ahead, Aramco’s output is expected to rise as Saudi Arabia and its OPEC partners unwind voluntary supply cuts, with the nation’s June production reported at 9.356 million barrels per day by independent analyst estimates compiled in OPEC’s Monthly Oil Market Report.
The energy firm has also stepped up its presence in debt markets, raising $9 billion in the second half of 2024 and $5 billion via a recent three-part bond offering. Aramco’s gearing ratio rose to 6.5% by the end of June.
Dividends remain a focus for investors after Aramco in March cut its projected payout for 2025 to $85.4 billion, down from $124.2 billion in 2024. For the upcoming quarter, the company announced a base dividend of $21.1 billion and a performance-linked payout of $0.2 billion. At 5.5%, Aramco’s dividend yield continues to outpace those of major U.S. oil peers.
The company’s financial performance feeds directly into Saudi Arabia’s fiscal planning as the kingdom works to diversify its economy under the Vision 2030 program. Notably, Saudi GDP grew 3.9% in the latest quarter, driven by a rebound in non-oil activities.
