Arabian oil giant Aramco reports a Q2 earnings of $22.67 billion, weathering market upheavals
Saudi Aramco Boosts Dividends and Advances Key Projects
Saudi Aramco, the world's largest oil company, has announced a significant boost in its dividend distribution for the second quarter of 2025. The company's board declared a base dividend of SR79.1 billion and a performance-linked dividend of SR0.8 billion, marking a 4.2 percent year-on-year increase in the base dividend. This increase represents a 13 percent rise over the last three years, as stated by Ziad Al-Murshed, the company's executive vice president and chief financial officer.
The company's resilience was proven in the first half of 2025, according to Amin Nasser, the president and CEO of Aramco. Despite weaker oil prices, Aramco's adjusted net income for the quarter was SR91.9 billion and SR191.6 billion for the first half. Free cash flow reached SR57 billion in the second quarter and SR129 billion over the six-month span.
Aramco's financial performance is reflected in its net profit of SR85 billion ($22.67 billion) for the second quarter of 2025. The company maintained 100 percent supply reliability during the second quarter. Cash flow from operating activities for the quarter was SR103.1 billion and SR222.4 billion for the half-year period.
In addition to its strong financial performance, Aramco is advancing several key upstream projects. The Dammam development project, which was brought onstream in phase one during the period, is set for completion in phase two in 2027, targeting a total increase in crude oil production capacity of 75 thousand barrels per day (mbpd). The Berri crude oil increment, Marjan crude oil increment, and the Zuluf crude oil increment are all on track for completion in 2025, adding a combined capacity of 875 mbpd.
These projects support maintaining Saudi Aramco's Maximum Sustainable Capacity (MSC) at 12.0 million barrels per day (mmbpd) of crude oil. Aramco is also progressing multiple strategic gas projects aimed at increasing sales gas production capacity by over 60 percent, although specific projects and timelines for these were not detailed in the sources.
Aramco is not only focusing on its traditional hydrocarbon business but also investing in renewable energy. The company is investing in five solar and two wind projects in the Kingdom, holding a 30 percent equity stake in each.
Looking ahead, Aramco believes hydrocarbons will continue to play a vital role in meeting global energy and chemical demand. Global oil demand, as per Aramco CEO, showed notable resilience, supported by steady economic performance in major economies such as China and the US.
In line with its commitment to innovation, Aramco is focusing on carbon capture, hydrogen, renewables, and digital innovation, with a focus on AI. The Jafurah Gas Plant remains on track, according to Aramco, as the company continues to advance the Berri, Marjan, and Zuluf crude oil increments.
For the first half of 2025, Aramco's net profit reached SR183 billion. Aramco's downstream growth remains on track, with the company expanding its presence in new growth markets, launching new products, and upgrading its portfolio. The company's Aramco Research Centre in the UK is also making strides in digital innovation, particularly in the area of AI.
In conclusion, Saudi Aramco's strong financial performance, key upstream projects, and focus on innovation position the company well for the future. The main upstream projects to watch are the Dammam phases (2025/2027), Berri and Marjan increments (both 2025), and the Zuluf increment (2026), all primarily focused on maintaining and increasing crude oil production capacity.
- Saudi Aramco, a prominent player in the world's energy industry, announced an increase in its dividend distribution for the second quarter of 2025, boosting the financial fortunes of many investors.
- Amidst weaker oil prices, Saudi Aramco showcased a resilient performance, with a quarterly adjusted net income of SR91.9 billion and a half-year income of SR191.6 billion.
- Beyond its oil business, Saudi Aramco is also investing in renewable energy, holding equity stakes in five solar and two wind projects in the Kingdom.
- In the realm of technology, Saudi Aramco's Aramco Research Centre in the UK is making strides in digital innovation, particularly AI.
- Aramco believes that hydrocarbons will continue to be essential in meeting global energy and chemical demands, while also focusing on carbon capture, hydrogen, and renewable energy.
- Global oil demand, as per Aramco CEO, showed resilience, supported by steady economic performance in major economies like China and the US.
- The Dammam development project, Berri crude oil increment, Marjan crude oil increment, and the Zuluf crude oil increment are key upstream projects that Aramco is advancing, aiming to increase crude oil production capacity.
