Saudi Aramco (ARAM) reported lower profits for 2025 as oil prices fell from the previous year, but announced a $3 billion share buyback and hiked its dividend 3.5% amid optimism about demand and investment projects.
Chief executive Amin Nasser said on a conference call that the company had some spare capacity and was "not utilizing for the time being" some of its heavier oil grades.
He also warned "there would be catastrophic consequences for the world’s oil market the longer the disruption goes on, and the more drastic the consequences for the global economy.
"While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced."
Full-year adjusted net income came in at $104.7 billion for 2025, down from $110.3 billion the prior year as lower oil prices weighed on earnings, with the average realised crude price falling to $69.2 a barrel from $80.2 in 2024.
Chief executive Amin Nasser said the results demonstrated the strength of Aramco's "lower-cost, adaptable and highly reliable operations" in a year marked by price volatility, and pointed to record global oil demand in 2025.
Free cash flow was broadly flat at $85.4 billion, comfortably covering the $85.5 billion in total shareholder distributions made during the year, which included both base and performance-linked dividends.
The board declared a fourth-quarter base dividend of $21.89 billion, to be paid in the first quarter of 2026, and said the share buyback programme would be over 18 months.
Capital investment of $52.2 billion came in at the lower end of guidance and $1 billion below the prior year, with 2026 guidance set at between $50 billion and $55 billion as the company continues to expand its gas production capacity, targeting an 80% increase by 2030 from 2021 levels.
Aramco also flagged plans to acquire a significant minority stake in a Saudi AI venture called HUMAIN as part of efforts to use technology to unlock value, and reported $5.3 billion of what it calls 'technology realised value' from AI and digital solutions in 2025, taking the cumulative total to $11.3 billion since 2023.
“Following another year of record oil demand in 2025, we believe ongoing investments in our operations position us well for the future," said Nasser.
"In parallel, our ambitious gas expansion is progressing on schedule, aligning with rising domestic demand and delivering significant volumes of high-value associated liquids.
"Looking ahead, our strong project momentum underscores potential for future operating cash flow growth, creating further opportunities and reinforcing our position as a global energy leader."
** UPDATE: Adds extra quotes from call **