Emblem of Aramco, formally the Saudi Arabian Oil Group, Saudi petroleum and pure gasoline firm, seen on the second day of the twenty fourth World Petroleum Congress on the Massive 4 Constructing at Stampede Park, on September 18, 2023, in Calgary, Canada.
Artur Widak | Nurphoto | Getty Pictures
Saudi Aramco on Tuesday posted a drop in second-quarter revenues, citing decrease crude oil and refined chemical merchandise costs that had been solely partially offset by larger traded volumes.
The world’s largest oil firm declared an adjusted internet revenue of 92.04 billion Saudi riyal ($24.5 billion) over the three months to the tip of June. The outcome compares with a forecast of adjusted internet revenue of $23.7 billion, in line with an analyst survey estimate provided by the corporate.
Second-quarter revenues dropped to 378.83 billion Saudi riyals from 425.71 billion Saudi riyal in the identical interval of the earlier 12 months.
“Market fundamentals stay robust and we anticipate oil demand within the second half of 2025 to be greater than two million barrels per day larger than the primary half,” Aramco CEO Amin Nasser mentioned in a Tuesday assertion accompanying the outcomes.
Capital expenditure picked up barely to 46.2 billion Saudi riyal within the June quarter, up from 45.5 billion Saudi riyal in the identical interval a 12 months prior.
“An in-line set of outcomes this morning from Aramco, with sequentially weaker upstream earnings offset by a restoration in refining outcomes,” RBC analysts mentioned in a be aware following the outcomes. “With $25.5bn of capital investments within the first half of 2025, Aramco seems to be working decrease than its steerage of $52-58bn for the complete 12 months. Whereas spending sometimes picks up within the second half of the 12 months, we predict full 12 months capex might are available in direction of the decrease finish of its guided vary, topic to acquisitions.”
Crude costs have stayed depressed over the course of the 12 months, barring a short second-quarter flare-up sparked by Israel-Iran tensions. Futures have been underneath stress from an unsure outlook for demand, exacerbated since April by the rollout of Washington’s wide-spanning tariffs. The protectionist commerce measures muddy the image for development on this planet’s largest financial system and the way forward for the U.S. greenback, which denominates most commodities — together with crude oil.
Aramco’s revenue is ready to see a lift from larger output, after Saudi Arabia – and 7 different OPEC and non-OPEC companions — full unwinding 2.2 million barrels per day of voluntary cuts by means of a final tranche in September. Saudi Arabia most not too long ago produced 9.356 million barrels per day in June, in line with unbiased analyst estimates compiled in OPEC’s Month-to-month Oil Market Report.
Aramco has more and more tapped debt markets, with two issuances totalling $9 billion within the second half of 2024 and a three-part bond sale of $5 billion this 12 months. The corporate’s gearing ratio went as much as 6.5% as of June 30, 2025, in comparison with 5.3% as at March 31, 2025.
Entrance of thoughts for buyers is the dividend coverage at Aramco, which in March slashed investor returns for 2025 to $85.4 billion — down sharply from the $124.2 billion of 2024 — after a first-quarter decline in internet income. Aramco declared a base dividend of $21.1 billion and a performance-linked dividend of $0.2 billion within the third quarter.
The corporate’s dividend yield stood at 5.5% as of Monday, nonetheless forward of U.S. trade peer Exxon Mobil‘s 3.6% and Chevron‘s 4.5%, in line with FactSet information.
Aramco’s payouts ripple sharply into the funds of Saudi Arabia, which has been juggling diversifying its financial system away from oil reliance underneath Crown Prince Mohammed bin Salman’s signature Imaginative and prescient 2030 program. Saudi Arabia’s gross home product expanded by 3.9% within the second quarter, boosted by non-oil actions.
