In addition to lower oil production and prices, Saudi Arabian oil giant Aramco announced a profit plunge in its first quarter of 2025. This decline is due to the drop in oil prices caused by international market forces. The home-share platform recently reported stellar revenues of $108.1 billion (€97.4 billion) for the quarter. Profits did sink to $26 billion (€23.4 billion), a 4.6% decrease from last year’s $27.2 billion (€24.5 billion).
The cause of the downturn, according to Aramco’s President and CEO, Amin H. Nasser, was changing economic conditions. In his statement, he noted, “Global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices.” This sentiment is indicative of the ongoing woes that continue to plague the oil industry amid a turbulent and ever-changing marketplace.
Despite the impact of its IPO, Aramco remains in a strong market position and is valued at more than $1.6 trillion (€1.4 trillion). This astounding figure now makes it the sixth richest company in the world, behind only tech company leaders Microsoft, Apple, NVIDIA, Amazon and Alphabet. With a new breakthrough, the company’s stock recently started trading at more than $6 (€5.4) per share. Only a fifth of its shares have been listed on the Tadawul stock exchange, the Saudia government retaining 70 per cent of its shares.
Providing context to these financial results are sweeping changes in the overall oil market. That was when benchmark Brent crude started to spike, crossing the $63 (€56.7) a barrel mark. At the same time, the OPEC+ alliance announced plans to increase production by 411,000 bpd next month. These four overlapping dynamics create a precarious environment where oil prices are still subject to large volatility.
Saudi Arabia has started to lay the groundwork for a massive infrastructure investment. They are particularly keen about this as they get ready to host the World Cup in 2034. Moving ahead with this event would probably need the building of new stadiums and facilities. The taxpayer cost is expected to total tens of billions of dollars.
Additionally, Crown Prince Mohammed bin Salman is spearheading a transformative $500 billion (€450.1 billion) project to build Neom, an ambitious futuristic city along the Red Sea. These culinary initiatives all feed into a wider aim of Saudi Arabia’s cultural shift to diversify their economy away from oil.
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