Saudi Aramco cuts its profits by 10 billion dollars

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Saudi Aramco reported a decrease in profits in the first quarter, which led to a reduction of $ 10 billion to its profits and reduced a major source of money for the Kingdom of Saudi Arabia, amid unconfirmed expectations for oil prices.

The net income of the largest oil company in the world decreased by 5 percent from the previous year to 26 billion dollars. The average price of oil was $ 76.30 a barrel, compared to $ 83 a barrel in the same quarter of last year.

Although the performance was better than some of its peers, including BP and Shell, which fell in the first quarter profits in half and declined by 28 percent, respectively, Aramco Its total profits reduced to $ 21.4 billion from $ 31 billion in the last quarter of last year.

The group had already announced in March that its total compensation this year would be about $ 85 billion, which is less than 124 billion dollars that it paid in 2024.

Less batches of Aramco’s profits will add pressure on the Kingdom of Saudi Arabia’s budget, as the government and entities related to the country, such as the Public Investment Fund, will spend billions of dollars to diversify the economy away from its dependence on oil revenues.

The economic diversification program launched by Crown Prince Mohammed bin Salman includes many ambitious projects, including a future area in the northwestern coast of the country called Neom.

The Ministry of Finance said on Monday that the Kingdom’s deficit expanded to $ 15.6 billion in the first quarter, up from $ 3.3 billion in the same period in 2024, when oil revenues decreased by 18 percent.

Amin Nasser, President of Aramco and CEO, said: “The dynamics of global trade affected the energy markets in the first quarter of 2025, with economic uncertainty that affects oil prices.”

Since the end of the quarter, oil prices have decreased by 15 percent, to about $ 64 a barrel, after the American customs tariff and fears of increasing the offer after OPEC+, the Saudi -led oil cartel, sparked sharp production this year.

While the decrease in oil prices pressed the Kingdom of Saudi Arabia, US President Donald Trump, who wants to reduce the costs of consumers, received it. He has also argued that low oil prices would increase Russia to end its war with Ukraine.

Trump, who raised the tariff tariffs that sparked market fluctuations and helped pushing oil prices to a decrease, is scheduled to visit the Kingdom of Saudi Arabia next week as a regional tour.

AramCo did not provide any guidelines on whether he would have to control its profits further, or reduce its spending, but he pointed out that “planning and implementing the disciplined capital” was vital during periods of volatility of oil prices.

RIYADH is already re -calibrating their spending by limiting some projects and extending others over a longer period of time.

But the country faces an arduous set of final dates to build infrastructure before hosting a series of major events, including the 2030 and FIFA World Cup in 2034.

The main wealth fund in the Kingdom of Saudi Arabia, PIF has more than 97 % of Aramco.

Despite the drop in oil prices, Saudi Arabia and members of the OPEC+ member are advancing with increased production.

At the beginning of this month, eight OPEC+ members, including the Kingdom of Saudi Arabia and Russia, said that they will scatter 411,000 barrels per day in June, which is the second monthly increase in a row.

Jorge Leon, in Restad Energy Consulting at the time, said it was a “bomb” decision that reflects a shift in the strategy of the group.