DUBAI, United Arab Emirates — On Sunday, Saudi Aramco, the state-owned oil titan of Saudi Arabia, announced its first-quarter profits totaling $26 billion. This marked a 4.6% decrease from the previous year, primarily due to a decline in global oil prices impacting the kingdom’s ambitious multi-trillion-dollar development agenda.
In its recent financial disclosure on the Riyadh Tadawul stock exchange, Aramco, officially the Saudi Arabian Oil Co., reported revenues of $108.1 billion for the quarter. This compares to $107.2 billion in revenues and $27.2 billion in profits recorded in the same period a year prior.
Saudi Arabia has previously committed to investing $600 billion in the United States during President Donald Trump’s term. Trump, who will arrive in Riyadh on Tuesday for his first official foreign visit since reclaiming presidency, expressed in January his preference for this figure to reach $1 trillion.
Simultaneously, the kingdom’s de facto leader, Crown Prince Mohammed bin Salman, has ambitious plans for a $500 billion project to construct Neom, a colossal, futuristic city along the Red Sea’s desert landscape. Furthermore, Saudi Arabia will require extensive infrastructure investment, including new stadiums, to prepare for hosting the World Cup in 2034.
The disclosure of Aramco’s financial results comes as the OPEC+ coalition has decided to increase oil production. The oil group plans to augment output by 411,000 barrels per day next month amid the uncertainty in Middle Eastern markets driven by U.S. tariffs. Consequently, Saudi Arabia might need to either borrow funds or tap into reserve funds to support the crown prince’s costly aspirations.
On Sunday, Aramco’s shares traded at over $6 each, down from a high of approximately $8 the previous year. The stock’s decline over the past year coincides with the drop in oil prices. Recently, Aramco’s President and CEO, Amin H. Nasser, commented on global trade dynamics affecting the energy markets in the first quarter of 2025, resulting in economic uncertainty impacting oil valuations.
Benchmark Brent crude was trading at above $63 a barrel on Friday, down from peaks exceeding $80 the previous year.
With a market valuation exceeding $1.6 trillion, Aramco ranks as the sixth richest company globally, trailing behind giants like Microsoft, Apple, NVIDIA, Amazon, and Alphabet, Google’s parent company. Analysts perceive Aramco as a pivotal force in the global oil industry.
While only a small share of Aramco is publicly traded on the Tadawul, the Saudi government retains majority ownership. This stake not only supports national expenditures but also enriches the royal Al Saud family’s wealth.