Aramco’s stock performance is under the spotlight, with Bloomberg noting that Aramco’s promise to reward investors has fallen flat since its 2019 IPO. Despite briefly hitting a market cap of USD 2.4 tn during the oil price spike of 2022, Aramco’s valuation has now slipped to around USD 1.5 tn, compared to Crown Prince Mohammed bin Salman’s USD 2 tn target. Over five and a half years, the oil giant has delivered a total return of 16% — the lowest among its peers — while Exxon, Chevron, and Shell delivered gains exceeding 50%.

Bonds over equity? The company has recently been taking on more debt to maintain payments of its dividends, which amounted to USD 42.7 bn in 1H 2025, compared to USD 34.4 bn of freecash flow generated over the same period. Even with Brent crude averaging over USD 70 / bbl from January to June, the oil giant struggles to fully cover its payout — a troubling sign if prices further weaken. Bloomberg suggests that investors increasingly see Aramco bonds, not shares, as the safer option.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

But Aramco is taking a different approach to its peers, Bloomberg noted. While other oil giants have been cutting spending, the company has been investing heavily in new projects. Without higher oil prices, higher output, or significant cost reductions, Aramco will struggle to address its lagging equity performance, but the company remains confident in its “very attractive investment proposition, Executive Vice President and CFO Ziad Al Murshed told investments earlier this month.

Tags: