Lower oil revenues weigh down on Aramco’s results: Saudi Aramco’s net income dipped 22% y-o-y to just above SAR 85 bn (USD 22.7 bn) in the second quarter, slightly underperforming the median estimate of 17 analysts at USD 23.7 bn, according to an earnings release (pdf).

The decline in net income came as revenue and sales income decreased 13.4% to SAR 407.1 bn (USD 108.6 bn), compared to the same period last year. Lower operating expenses and Zakat taxes helped cushion the blow.

The drivers: The world’s largest oil company said the waning revenues were due to lower prices for crude oil, which logged an average realized price of USD 66.7/bbl, significantly down from USD 85.7/bbl in the same period last year. Lower prices of refined and chemical products also weighed down on income, but were partially offset by higher sales.

The impact was expected: US tariffs and Opec+ hikes are starting to hit Aramco’s numbers this quarter. Saudi’s oil revenues were down 29% y-o-y in 2Q.

First half performance: Net income for the oil giant reached SAR 182.6 bn (USD 48.7) bn in 1H 2025, down 13.6% y-o-y. Revenue and sales income inched down 7.8% to just shy of SAR 836.8 bn (USD 223.1 bn).

Supply and demand to pick up in 2H? “Market fundamentals remain strong, and we anticipate oil demand in the second half of 2025 to be more than 2 mn barrels per day higher than the first half,” CEO Amin Nasser said in the release. Crude output is slated to increase in 2H after Opec+ completed the unwinding of 2.2 mn bpd in output instituted in 2023 this week, bringing Saudi Arabia’s quota to 9.75 mn bbl/d in its meeting.

Tags: