Saudi Aramco, the world’s largest oil company, which recently came under the attack of Iranian attack, made a profit of $ 104 billion in the year 2025, which is less as compared to 2024. The company released its financial results for the year 2025 on Tuesday. According to this, the company had a profit of $ 110 billion in 2024 but it would come down to $ 104 billion in 2025. Aramco, the world’s largest oil company, said that its revenue in the year 2025 will be $ 445 billion, which was $ 480 billion a year ago. Aramco’s performance has been affected by the targeting of its oil fields and facilities during the Iran war.
$3 billion buyback
Saudi Arabia’s Aramco, the world’s top oil exporter, reported a 12 percent decline in annual profit due to low crude oil prices, but announced it would buy back up to $3 billion of shares in its first buyback. This buyback program will be run in the next 18 months. Until now, the company has relied on its large dividend payments to reward shareholders. These results come at a very volatile time for the global oil market, as the US-Israel war over Iran has almost closed the Strait of Hormuz and many regional producers have been forced to reduce production. Brent crude, which reached close to $120 on Monday, is trading around $93 on Tuesday.
The result was something like this
Aramco reported net income of $93.4 billion for 2025, below LSEG’s consensus estimate of $95.6 billion. In the fourth quarter, net profit fell 20.5 percent to about $17.8 billion due to higher operating costs, the 12th consecutive quarter of year-over-year profit decline. Aramco has confirmed a base dividend of $21.1 billion and a performance-linked dividend of $219 million for the fourth quarter, a measure calculated based on free cash flow from a bumper profit in 2022 following the Ukraine war. Total dividends for the year were $85.5 billion, down from $124 billion in 2024.
What is the Kingdom’s stake?
Aramco has long been a cash cow for the Saudi government, which depends on fossil fuels for more than half of government revenue. The Kingdom directly owns about 81.5 percent of the company and its sovereign investor, the Public Investment Fund, holds another 16 percent. Total revenue this year declined by 7.2 percent to $415.8 billion due to weak prices of crude oil, as well as refined and chemical products. The company’s gearing ratio – a measure of debt – fell to 3.8 per cent at the end of 2025 from 4.5 per cent at the end of 2024.