Saudi Aramco, the world's top oil-exporting company, has reported a 22 per cent fall in its second-quarter profit, marking the 10th consecutive quarter of decline, on lower revenue amid weaker oil prices.
Net profit in the three months ending in June fell to 85.02 billion Saudi riyals ($22.6 billion), from $109.01 billion, the company said on Tuesday in a filing to the Tadawul stock exchange, where its shares trade.
Revenue for the period decreased 11 per cent year-on-year to 378.8 billion riyals, down from 425.7 billion riyals in the same period last year, amid lower prices for crude oil and refined and chemical products, it said.
Aramco's share price was down 0.3 per cent on Tuesday at 12.06pm UAE time.
"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," said Aramco president and chief executive Amin Nasser.
"Our long-term strategy is consistent with our belief that hydrocarbons will continue to play a vital role in global energy and chemicals markets."
For the first half of the year, Aramco's net profit declined 13.5 per cent to 182.5 billion riyals, from 211.2 billion riyals in the same period of 2024. Revenue declined five per cent to 784.48 billion riyals.
"Despite geopolitical headwinds, we continued to supply energy with exceptional reliability to our customers, both domestically and around the world," Mr Nasser said.
Aramco said it would distribute a base dividend of $21.1 billion. A performance-linked dividend of $200 million will be paid in the third quarter. The total dividend of $21.3 billion is 31 per cent lower year-on-year.
Oil prices have endured an up-and-down ride in 2025, as the market digests uncertainties stemming from geopolitical tensions in the Middle East, the effect of US tariffs and global economic concerns.
Brent, the benchmark for two thirds of the world's oil, was steady at $68.7 a barrel at 11am UAE time on Tuesday. It ended last week down 2.83 per cent and is now down nearly 8 per cent in 2025.
West Texas Intermediate, the gauge that tracks US crude, was also steady at $66.2 per barrel. It settled 2.79 per cent lower on Friday and has shed more than 6 per cent so far this year.
Saudi Arabia, the Arab world's biggest economy and the largest oil-producing country, has continued to act to rein in oil prices and supply.
The Opec+ group of oil-exporting countries, led by Saudi Arabia and Russia, on Sunday agreed to increase its oil production by 547,000 barrels per day for September, as they continue to unwind voluntary cuts introduced during the pandemic.
That marked the sixth month in a row the group has raised output as it gradually restores 2.2 million barrels per day of supply that was withheld from the market.
Since December 2024, Opec has maintained that it would gradually and flexibly unwind its voluntary cuts beginning in April 2025.
In past statements, the group cited a steady global economic outlook, healthy market fundamentals and low oil inventories as reasons for restoring output.
Opec has reiterated that future increases can be paused or reversed if market conditions deteriorate, to maintain oil market stability.
Aramco's free cash flow dropped in the second quarter to $15.2 billion, down 20 per cent from $18.9 million in the same period of 2024.
"The decrease was attributable to lower net cash provided by operating activities, while capital expenditures remained relatively consistent with the same quarter in 2024," the company said.
Capital expenditure in the second quarter stood at $12.3 million, up 1.5 per cent from $12.1 million in the same period of last year.
"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," Mr Nasser said.
Deena Kamel contributed to this report
