Aramco reports 22% drop in Q2 profit amid softening oil prices
Saudi Aramco, reported declining net profit for the second quarter of 2025, reflecting the impact of lower crude oil prices on the energy sector.
The company reported net profit of $22.7 billion for the three months ending June 2025, down 22% compared to the same period last year when profits stood at $29.1 billion. However, the result marked a 13% decline from the previous quarter's earnings of $26.0 billion.
However, the company's adjusted net profit, which excludes one-off items, declined to $24.5 billion from $28.4 billion in the second quarter of 2024, reflecting the impact of lower oil prices on underlying operations.
Aramco's average realised crude oil price fell to $66.7 per barrel during the quarter, down from $85.7 per barrel in the same period last year and $76.3 per barrel in the first quarter of 2025. This 22% year-on-year decline in oil prices posed challenges for the company's revenue generation.
Despite lower oil prices, Aramco maintained robust cash generation, with free cash flow reaching $15.2 billion in the second quarter, down from $19.0 billion in the previous year. For the first half of 2025, free cash flow totalled $34.4 billion.
The company continued its substantial shareholder returns programme, paying base dividends of $21.1 billion during the quarter. Additionally, Aramco distributed performance-linked dividends of $219 million, significantly lower than the $10.8 billion paid in the second quarter of 2024.
Capital expenditures increased substantially to $12.3 billion from $12.1 billion in the previous year, reflecting the company's ongoing investments in expanding production capacity and downstream operations.
Aramco's return on average capital employed stood at 18.7% on a rolling 12-month basis, down from 21.8% in the second quarter of 2024 but demonstrating continued strong profitability metrics.
"Aramco's resilience was proven once again in the first half of 2025 with robust profitability, consistent shareholder distributions and disciplined capital allocation," said Aramco President & CEO Amin H. Nasser. "Market fundamentals remain strong and we anticipate oil demand in the second half of 2025 to be more than two million barrels per day higher than the first half."
Aramco maintained its strong operational performance with 100% supply reliability during the first half of 2025. The company made progress on key projects including the Berri, Marjan and Zuluf crude oil increments, whilst bringing the first phase of its Dammam development project onstream during the quarter.
