Saudi Aramco Profit Falls 12% in 2025, Announces $3 Billion Share Buyback

Saudi Arabia’s state-owned energy giant Saudi Aramco, the world’s largest oil exporter, reported lower earnings for 2025 amid softer crude prices while announcing a new capital return initiative for investors. 

Profit Decline and Share Buyback Plan 

Aramco posted net income of $93.4 billion for 2025, missing the LSEG consensus estimate of $95.6 billion and marking a 12% decline in annual profit, largely due to weaker crude oil prices. 

Alongside the results, the company announced its first-ever share buyback programme of up to $3 billion, which will be carried out over the next 18 months. Historically, Aramco has rewarded shareholders primarily through its large dividend payouts rather than stock repurchases. 

Quarterly Earnings and Dividend Payments 

For the fourth quarter, Aramco reported net profit of about $17.8 billion, representing a 20.5% decline from a year earlier due to higher operating costs. The latest earnings mark the company’s 12th consecutive quarter of year-on-year profit decline. 

The company confirmed paying a base dividend of $21.1 billion for the fourth quarter, along with $219 million in performance-linked dividends, a mechanism tied to free cash flow introduced after the surge in profits following the Ukraine war in 2022. Total dividends distributed during 2025 stood at $85.5 billion, down from $124 billion in 2024. 

Revenue Trends and Market Environment 

Aramco’s total revenue fell 7.2% to $415.8 billion in 2025, reflecting weaker prices for crude oil, refined products and chemicals. The company’s gearing ratio declined to 3.8% at the end of 2025 from 4.5% in 2024, indicating lower indebtedness. 

The earnings were announced during a period of heightened volatility in global oil markets following the U.S.–Israeli war on Iran, which has pushed the Strait of Hormuz close to disruption and forced some regional producers to curb output. Brent crude surged to nearly $120 on Monday before easing to around $93 on Tuesday. 

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Conclusion 

Saudi Aramco’s 2025 results highlight the impact of lower oil prices on profitability, even as the company introduces its first share buyback programme alongside continued dividend payouts to shareholders. 

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