Aramco reports healthy profits, high capex levels

Aramco reported healthy profits of US$22.7bn in Q2 2025 in its latest financial results, albeit down from the US$26bn recorded in Q1, and maintained high levels of capex to pursue its strategic objectives 

Half-year profits stood at US$48.7bn compared with US$56.3bn in the first half of 2024. The decrease was mainly due to the impact of lower revenues (due to lower crude oil prices and lower refined and chemical products prices) as well as higher operating costs, according to the company.

Aramco declared a Q2 2025 base dividend of US$21.1bn and a performance-linked dividend of US$0.2bn to be paid in the third quarter.

“Aramco’s resilience was proven once again in the first half of 2025 with robust profitability, consistent shareholder distributions and disciplined capital allocation,” said Amin H. Nasser, Aramco CEO.

“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. Our long-term strategy is consistent with our belief that hydrocarbons will continue to play a vital role in global energy and chemicals markets, and we are ready to play our part in meeting customer demand over the short and the long term.”

Upstream capital expenditure stood at US$19.2bn for the first half of 2025, relatively consistent with the first half of 2024 due to continuing development activity on multiple strategic gas projects to expand its gas business and advancement of crude oil increments designed to maintain crude oil MSC at 12.0mn bpd.

Aramco reported progress in its Berri, Marjan and Zuluf crude oil increments and brought Phase One of the Dammam development project onstream.

Aramco’s strategy to increase sales gas production capacity by more than 60% was advanced with multiple gas projects, including the Tanajib Gas Plant, Fadhili gas plant expansion and Jafurah Gas Plant, part of the Jafurah unconventional gas field development, with phase one on track for completion in 2025.

Downstream, capital expenditures for the first half of 2025 were US$5.1bn, an increase of 33.1% compared to the same period in 2024, predominantly due to the steady progress of capital projects such as the construction of the refinery-integrated petrochemical steam cracker being developed by S-OIL, the Amiral expansion at the SATORP refinery, and other projects. Global retail momentum continued with the introduction of premium fuel lines in Chile and Pakistan.

“We continue to invest in various initiatives, such as new energies and digital innovation with a focus on AI – aiming to leverage our scale, low cost, and technological advancements for long-term success,” added Nasser. The company significantly boosted its AI computing capacity to reach over 500 PetaFLOPS, a 20-fold increase from the previous year, while power purchase agreements were signed to develop new renewables projects, capitalising on the Kingdom’s advantaged solar and wind resources.