Saudi Aramco share price falls over 2% after a 12% drop in annual profit, announces $3 billion buyback plan

Shares of Saudi Aramco, the world’s largest oil exporter, fell more than 2% in intraday trading on Tuesday, March 10, after the company reported a 12% decline in annual profit for 2025. For the full year 2025, Aramco reported net profit of $93.4 billion, down from $106.2 billion in 2024, reflecting weaker revenues amid higher global supply, US tariffs and broader economic headwinds.

The company's net income also dropped 12% for 2025 to $93.38 billion, compared with $106.24 billion a year earlier. Excluding exceptional items, adjusted net income declined 5.1% to $104.65 billion in 2025, compared with $110.29 billion in 2024.

Aramco also announced its first-ever share buyback programme, with plans to repurchase up to $3 billion worth of shares over the next 18 months. Until now, the state-backed energy giant has primarily relied on its massive dividend payouts to reward shareholders.

The stock fell as much as 2.2% to its day's low of 26.5 SAR.

Fourth-quarter earnings and dividend payouts

For the fourth quarter, Aramco reported net profit of nearly $17.8 billion, representing a 20.5% year-on-year decline as higher operating costs weighed on earnings. The company reported adjusted net income of $25.1 billion for the quarter.

Commenting on the performance, Aramco President and CEO Amin H. Nasser said the company maintained strong financial performance despite volatile energy markets.

“Aramco delivered robust growth and strong cash flows in 2025, reinforcing confidence in our strategy.” He added that disciplined capital allocation and the company’s low-cost operations helped support the results despite price volatility.

“We continue to leverage advanced technologies including AI to enhance efficiency and unlock value across our business. We also continued to maintain our impressive safety track record in 2025, with our lowest total recordable case rate since the IPO.”

Aramco confirmed a base dividend of $21.1 billion for the fourth quarter, along with $219 million in performance-linked dividends, a mechanism introduced after the company recorded record profits following the Ukraine war in 2022. Total dividends paid for the year stood at $85.5 billion, compared with $124 billion in 2024.

The earnings announcement came as the 11-day-old Middle East conflict continues to destabilise global energy markets, triggering sharp swings in crude prices. Iran has launched attacks on energy infrastructure across the Gulf, including Aramco’s Ras Tanura facility, which halted some operations after being targeted by drones.

Aramco Q4 Earnings decline as oil markets face geopolitical turmoil

Aramco’s results come at a time of extreme volatility in global energy markets as the U.S.-Israeli war with Iran has disrupted oil supply routes and forced several regional producers to cut output.

The conflict has triggered major disruptions around the Strait of Hormuz, a critical shipping route that handles roughly 20% of global oil supply.

However, oil prices eased on Tuesday after US President Donald Trump suggested that the conflict with Iran could end sooner than initially expected.

Brent crude, which had surged to nearly $120 per barrel on Monday, was trading around $93 per barrel on Tuesday following Trump’s remarks, helping calm markets after a period of extreme volatility.

The conflict has now entered its second week. Trump told CBS News that the military campaign was “very complete”, but warned that any attempt by Iran to disrupt tanker traffic through the Strait of Hormuz would provoke a response of “incalculable” scale.

Aramco also warned that prolonged disruptions in shipping through the Strait of Hormuz could have severe implications for global energy markets.

“There would be catastrophic consequences for the world's oil markets and the longer the disruption goes on ... the more drastic the consequences for the global economy,” said Aramco CEO Amin Nasser during an earnings call with reporters.

(with input from agencies)