Aramco resilient despite volatility thanks to low costs, financial strength: CEO

Amin Nasser, CEO of Saudi Arabian Oil Co. (Saudi Aramco)

Saudi Arabian Oil Co. (Saudi Aramco) has demonstrated strong operational resilience despite the recent market volatility, supported by a low-cost structure, strong financial position, and disciplined execution.

Addressing the H1 2025 earnings call attended by Argaam, Nasser said Aramco’s adjusted net income reached $50.9 billion, with free cash flow at $34.4 billion, maintaining a robust performance in the face of global turmoil.

Additionally, the Saudi oil giant’s net debt stood at 6.5%, while return on capital employed hit 19%, according to the top executive.

He also pointed out that global oil demand averaged 105.3 million barrels per day (bpd) from January through August. The rate is expected to continue growing and rise by more than 2% in the second half of this year, driven by seasonal factors and improving economic activity in China and the US.

Separately, global inventories remain tight at 3.6 billion barrels, supporting continued demand momentum through 2025, the CEO further stated.

Aramco maintained 100% reliability in crude and product deliveries in H1 2025, with the second-quarter production amounting to 12.8 million barrels of oil equivalent per day (boe/d), up by 475,000 boe/d from Q1 2025.

Executive VP and CFO Ziad Al-Murshed said Aramco achieved $3.5 billion in operational savings through SABIC integration, with ongoing portfolio restructuring across the group amid industry overcapacity. Aramco continues to shift capital from low-return assets to higher-yielding opportunities, including infrastructure projects that have drawn investor interest despite modest returns.

Al-Murshed added that Aramco expanded its retail footprint with 250 new branded stations since 2024, and maintained H1 2025 capex at $25.5 billion, in line with its full-year target of $52-58 billion.

At present, the Saudi oil giant is exploring multi-currency bond issuances, domestic sukuk, and secured export credit financing to support strategic growth, he underlined.

According to Argaam data, Aramco’s H1 2025 net profit after minority interest fell to SAR 181.3 billion, from SAR 209.5 billion a year earlier. The second-quarter bottom line came in at SAR 85.6 billion.