Saudi Aramco, the world’s largest oil producer, reported a 5% drop in net income for Q1 2025 compared to the same period last year — earning $26 billion. While still far ahead of global peers in scale and efficiency, the results come amid a challenging macroeconomic backdrop.
Key highlights:
- Aramco remains highly profitable, earning over 3x what ExxonMobil reported in the same quarter.
- The company cut dividends by $10 billion to maintain flexibility amid lower oil prices.
- With 97% government ownership, reduced dividends directly impact Saudi state revenues.
- Public debt rose by $30 billion in Q1, and large-scale commitments like NEOM, Expo 2030, and FIFA 2034 continue to pressure fiscal planning.
- The IMF now projects 3% GDP growth for Saudi Arabia in 2025, down 1.6 percentage points from earlier forecasts.
These developments underscore the close link between Aramco’s financial performance and the Kingdom’s economic trajectory.
Some of these themes were discussed during Dr. Carole Nakhle’s appearance with Sally Bundock on BBC News.
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