Riyadh, May 11 – Saudi Aramco reported a 4.6% decline in first-quarter net profit on Sunday, as falling global oil prices weighed on earnings and raised questions over funding for Saudi Arabia’s expansive economic development plans.
The state-owned energy giant posted net income of $26 billion for the three months ended March 31, down from $27.2 billion a year earlier. Revenues rose marginally to $108.1 billion from $107.2 billion in the same quarter last year, the company said in a filing to the Tadawul stock exchange.
“Global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices,” Aramco President and CEO Amin H. Nasser said in a statement.
Benchmark Brent crude was trading above $63 a barrel on Friday, significantly below highs of over $80 reached in 2024.
The results come as the OPEC+ group, of which Saudi Arabia is a key member, prepares to increase oil production by 411,000 barrels per day next month. The output hike comes amid rising market uncertainty following aggressive tariff moves by U.S. President Donald Trump, which have rattled Middle Eastern markets.
Aramco’s shares were trading above $6 on May 8, down from about $8 at their peak last year. The company remains one of the world’s most valuable, with a market capitalisation exceeding $1.6 trillion—ranking sixth globally behind Microsoft, Apple, NVIDIA, Amazon, and Alphabet.
The earnings report could pose a challenge for Crown Prince Mohammed bin Salman’s ambitious economic agenda. His $500 billion Neom project—a futuristic mega-city on the Red Sea—is a cornerstone of Saudi Vision 2030. The kingdom is also preparing to host the 2034 FIFA World Cup, which will require tens of billions of dollars in new stadiums and infrastructure.
Analysts suggest the dip in earnings may compel the government to either borrow or dip into financial reserves to fund its high-cost initiatives. A fraction of Aramco’s shares are publicly traded, while the majority remains under government control, serving as a crucial funding source for national spending and the Al Saud royal family.
The earnings also come ahead of a planned visit to Riyadh by President Trump on May 13, his first overseas trip since returning to office. Saudi Arabia has pledged to invest $600 billion in the United States over his term, with Trump suggesting the total could rise to $1 trillion.
