Aramco Reports $26 Billion Q1 Profit Amid Lower Oil Prices and Rising Debt

Saudi Aramco, the state-owned oil giant, announced first-quarter net profits of $26.01 billion, a 4.6% decline from the same period in 2024, as softer global oil prices and increased output from the OPEC+ alliance pressured revenues and cash flow.

Total revenue for the quarter reached $108.1 billion, compared to $107.2 billion in the first quarter of last year. Although the net income slightly exceeded analyst expectations of $25.745 billion, the downturn reflects broader headwinds in the global energy market, including economic uncertainty and rising supply concerns.

Aramco’s average crude oil price fell to $76.3 per barrel from $83.0 a year earlier, mirroring the global trend as benchmark Brent crude dipped to around $63 a barrel by early May. CEO Amin H. Nasser attributed the decline in earnings to “global trade dynamics” and ongoing “economic uncertainty.”

Despite the dip in profits, the company declared a base dividend of $21.14 billion—up 4.2% from a year earlier—and a performance-linked dividend of nearly $220 million to be paid in the next quarter. However, free cash flow dropped to $31.7 billion from $33.6 billion, leaving it below the total dividend payout.

Aramco’s financial positioning has come under closer scrutiny as its net debt rose by 18% to 92.4 billion riyals ($24.6 billion), the highest level in nearly three years. The company’s gearing ratio, which measures financial leverage, increased to 5.3%, still low by international oil major standards but trending upward.

The rise in debt comes as Saudi Arabia intensifies its economic diversification push, including the $500 billion Neom smart city project and preparations for the 2034 FIFA World Cup, which will require tens of billions in new infrastructure investment. Falling oil revenues have widened the kingdom’s budget deficit, putting added pressure on Aramco as a major source of government funding.

Saudi Arabia, a leading force in the OPEC+ coalition, has recently supported increased oil production despite ongoing price volatility. The group has agreed to raise output by 411,000 barrels per day in the coming month.

Aramco’s stock has been trading at around $6 per share, down from a peak of $8 last year. The company maintains a market capitalization of over $1.6 trillion, ranking it among the world’s most valuable publicly traded firms.

While the company continues to benefit from a relatively low debt burden, its leadership has signaled plans to explore further debt issuance. Aramco CFO Ziad Al-Murshed previously noted that the firm could return to bond markets after issuing $9 billion in debt last year.

Bloomberg, ABC News, and the Wall Street Journal contributed to this report.