Aramco posts $22.67bn Q2 profit amid market volatility 

Saudi Aramco reported a second-quarter net profit of $22.67 billion, down from $26.01 billion in the previous quarter and $29.07 billion a year earlier. Shutterstock
Short Url
Updated 05 August 2025
Follow

Aramco posts $22.67bn Q2 profit amid market volatility 

RIYADH: Saudi Aramco reported a net profit of SR85 billion ($22.67 billion) for the second quarter of 2025, underscoring its operational strength and financial resilience amid ongoing market volatility.

For the first half of the year, net profit reached SR183 billion, supported by robust cash flows, consistent shareholder payouts and exceptional supply reliability.
The company’s board declared a base dividend of SR79.1 billion and a performance-linked dividend of SR0.8 billion for the second quarter, both scheduled for payment in the third quarter, according to a press release.

In a statement, Amin Nasser, president and CEO of the energy firm, said: “Aramco’s resilience was proven once again in the first half of 2025 with robust profitability, consistent shareholder distributions and disciplined capital allocation.”
He added: “Despite geopolitical headwinds, we continued to supply energy with exceptional reliability to our customers, both domestically and around the world.”

While quarterly earnings came in strong, net profit dipped from SR97.5 billion in the first quarter and SR109 billion a year earlier, driven largely by weaker oil prices. The average realized crude oil price fell to $66.7 per barrel in the second quarter, down from $76.3 in the first quarter and $85.7 in the second quarter of 2024. 

Adjusted net income — a measure reflecting underlying performance — stood at SR91.9 billion for the quarter and SR191.6 billion for the first half. Cash flow from operating activities came in at SR103.1 billion for the quarter and SR222.4 billion for the half-year period, while free cash flow reached SR57 billion in the second quarter and SR129 billion over the six-month span.

Nevertheless, Aramco maintained 100 percent supply reliability and pushed forward with key upstream projects.
“Market fundamentals remain strong and we anticipate oil demand in the second half of 2025 to be more than 2 million barrels per day higher than the first half,” Nasser said.

During the media conference call following the earnings release, he reiterated that Aramco’s performance over the first half of 2025 demonstrated the company’s resilience and ability to adapt effectively amid ongoing uncertainty and market volatility.

In response to a question by Arab News, Nasser expressed confidence in Aramco’s ability to meet its strategic objectives, highlighting the strength of the company’s balance sheet.
He emphasized that the current gearing ratio of 6.5 percent positions Aramco among the strongest globally in terms of financial stability.

“We always look at potential to improve efficiency in our spending, building flexibility and discipline. This is embedded in our planning and capital discipline, and we have demonstrated that flexibility when appropriate, always recognizing the ability to generate long-term value,” he added.

Aramco’s base dividend of SR79.1 billion for the second quarter represents a 4.2 percent year-on-year increase, Nasser noted, adding that “this keeps us on track to deliver strong shareholder dividend distribution this year, subject to board discretion.”

Ziad Al-Murshed, executive vice president and chief financial officer of Aramco, told Arab News: “We are maintaining our dividend distribution, which has been increased by 13 percent over the last three years. Again, that’s another testament to the financial strength of the company.”
He added: “Not only are we undertaking the largest capital program in our history due to unique opportunities, but we are also increasing dividends as we aggressively grow.”

On the market outlook, the Aramco CEO noted that global oil demand had shown notable resilience, supported by steady economic performance in major economies such as China and the US.

Physical market indicators also remained strong, reflecting the overall strength in market fundamentals. 

Nasser said that oil demand in the second half of the year is usually higher, on average, than the first half due to seasonal demand. 

“A strong demand for this new offering is a testament to the confidence of global investors in both Aramco’s financial resilience and our robust balance sheet,” he added. 

On upstream development, Aramco continued to advance the Berri, Marjan and Zuluf crude oil increments and confirmed that the Jafurah Gas Plant remains on track. Phase one of the Dammam development project was also brought onstream during the period. 

“Procurement and construction activities are progressing for Marjan crude oil increment and also for the Jafurah phase one gas plant, which are on track for completion this year,” Nasser stated. 

He added: “Phase one of our Dammam project has also been brought onstream. This project helps us to tap into around 850 million barrels of reserves in the Dammam complex.” 

Aramco’s downstream growth remains on track as the company expands its presence in new growth markets, launches new products and upgrades its portfolio. 

“We continue to pursue initiatives that drive incremental operating cash flow, including growing our liquid-to-chemical business and making performance improvements across the business,” Nasser said. 

He added that Aramco is also investing in five solar and two wind projects in the Kingdom, holding a 30 percent equity stake in each. 

“We believe hydrocarbons will continue to play a vital role in meeting global energy and chemical demand. Meanwhile, we are investing in innovation in carbon capture, hydrogen, renewables and digital innovation, with a focus on AI,” he said. 


Mapping Saudi soils to grow better crops

Updated 47 min 51 sec ago
Follow

Mapping Saudi soils to grow better crops

  • Palm trees, root crops, and coastal plants reveal the land’s story

RIYADH: Saudi Arabia’s land tells stories written beneath the feet. From fertile plains and rugged highlands to vast deserts, the Kingdom’s diverse landscapes shape what can grow, where it grows, and how agriculture can thrive.

Alongside geography and climate, soil conditions play a decisive role in agricultural success. Understanding soil types across the Kingdom helps determine which crops can flourish and what interventions may be needed to sustain them.

In an interview with Arab News, Turki Almutairi, a senior environmental specialist at the National Afforestation Center under the National Center for Vegetation Cover Development and Combating Desertification, outlined the main soil types found across Saudi Arabia.

High amount of salt makes the soil unfit for the production of most crops, even if the soil is fertile. (Supplied)

“The dominant soil in the Kingdom are sandy desert soils, alongside calcareous soils in the central region. Rocky and stony soils are present along mountainous and hilly landscapes,” he said.

“Alluvial soils are common in wadies (valleys), while saline and sodic soils are located in depressions (Sabkhas) and along coastlines. Pockets of clayed soils can be also found around few sites along the Kingdom.”

The Kingdom’s vast territory gives rise to unique soil characteristics in each region, enabling different crops to grow depending on local conditions.

“Soil is the growing medium for plants. The role of soil includes structural stabilization, providing nutrients and a communication medium for plants,” Basil Nasir, soil lead at engineering consultancy William Sale Partnership, told Arab News.

Basil Nasir, soil lead at the engineering consultant company, William Sale Partnership (WSP). (Supplied)

According to Nasir, assessing soil use is essential before determining whether it is fertile or infertile, as different soils support different plant types.

“The soil used for trees differs from the soil used for ornamental plants and from the soil used for aquatic plants. It varies according to the specific needs of each plant, and based on this, we determine what the soil requires and assess its fertility,” he said.

Nasir explained that soil characteristics are shaped by both physical and chemical components. In addition to water and air, mineral particles such as sand, silt and clay are key indicators of soil health. Organic matter, derived from plant and animal remains, forms the fourth major component.

The balance between these elements determines soil behavior. One important physical trait is water-holding capacity, which influences what types of plants a soil can support.

 

Opinion

This section contains relevant reference points, placed in (Opinion field)

“If the soil is like dunes, adding water will cause it to run off, but if the soil is clay, its ability to retain water will be very high. If you add water and return the next day, you will find that the water is still there,” said Nasir.

Chemical properties, such as whether soil is alkaline or acidic, are equally important. Understanding both physical and chemical traits allows for proper assessment and treatment when needed.

“What determines whether a plant is suitable for a particular environment is primarily the plant's nature. For example, some plants have fibrous roots and therefore do not require well-draining soil,” Nasir added.

“A palm tree, for example, does not care whether it was planted in one soil or the other because its roots are fibrous. Therefore, palm trees are strong plants and are suitable to grow in both dry and wetlands, while preferring sandy areas.”

Soil Salinity can be treated through Soil leaching which means washing the soil with certain amount of water to reduce the salt in it. (Supplied)

Crops such as potatoes, onions, carrots and beetroots — where the edible part grows underground — typically thrive in sandy soils. As a result, plantations of these crops are commonly found in northern regions such as Hail and in Wadi Ad-Dawasir.

In the eastern region, including Al-Ahsa, wetlands are more common due to climatic conditions. Growing plants in such environments often requires human intervention.

“Plants that are coastal or could be found in lagoons or lakes must have some sort of soil around them, like lotus flowers and mangrove trees.”

“An important parameter to keep in mind is that there is no air in its soil, and they are adapted to this condition. However, the lack of air, along with the presence of organic matter, will create a situation where anaerobic bacteria react with the soil, potentially causing diseases we can easily avoid,” said Nasir.

He emphasized that removing organic matter from such soils is essential to ensure plant survival in aquatic environments.

Mountainous and rocky regions in Saudi Arabia are generally volcanic, resulting in low water-holding capacity and challenging growing conditions. However, volcanic ash contributes to high fertility, allowing certain crops to flourish.

As a result, western regions support tree crops such as coffee, mangoes, some banana varieties and pomegranates.

There are various types of soils such as clay, sandy, silty and loamy. Each type provides excellent conditions for specific plants. (Supplied)

As development accelerates across the Kingdom, soil improvement efforts are expanding under the National Greening Program.

“Soil is considered fundamental for the National Greening Program’s objectives. Understanding the soil variability along the Kingdom is a precondition for fostering sustainable soil management,” Almutairi told Arab News.

Adding, “In this line, the NGP is working towards the establishment of the Saudi Soil Information System (TURBA-KSA), which consists of mapping soils and its functional properties in the Kingdom using state-of-the-art technology.”

He also noted the creation of the “Land Rehabilitation Watch” to report, verify and monitor land rehabilitation nationwide.

“This milestone allows the Kingdom to understand how soil and land health are progressing against national and international targets of land degradation neutrality. Documenting good soil and land management practices is also important, so that those successful practices could be scaled up along the Kingdom, which is a priority task for NGP,” he said.

Raising public awareness is another key pillar of the program.

“Assessing different emerging technologies and soil amendments is a daily activity of NGP, as it then provides technical support to partners on the selection and application of these technologies.”

DID YOU KNOW?

• Saudi Arabia cultivates around 1 million hectares, mainly in Riyadh, Qassim, Hail, and Jouf.

• Farming follows the seasons: winter brings onions, garlic, and carrots, while summer yields watermelon, tomatoes, and cucumbers.

• The Kingdom is a top date producer, with over 31 million palm trees generating nearly 1.54 million tons, especially in Riyadh and Qassim.

Almutairi stressed that soil is often overlooked because it lies unseen beneath the surface, despite its critical role.

Yet soil produces 95 percent of food, stores water, holds more carbon than vegetation and the atmosphere, suppresses contaminants, regulates water, carbon and nutrient cycles, and hosts microorganisms linked to the human microbiome.

He emphasized the need to engage the general public, particularly urban communities disconnected from nature. Education helps people understand where food comes from and how contact with soil — such as walking barefoot — can support well-being. Healthy soils also contribute to cleaner water and air, he added.

Almutairi also called for stronger advocacy among decision-makers, noting that investment in healthy soils supports climate action, food security and sustainable development.

He concluded that key strategies include officially observing UN World Soil Day on Dec. 5, integrating soil education into curricula, launching annual social media campaigns, using art to raise awareness, and organizing public events that connect soils to everyday life.