Saudi Aramco Posts Record $93.4B Loss as Oil Prices Plummet

Saudi Aramco, the world's largest energy company, has recorded a historic 12% drop in profits due to plummeting oil prices.

The company's net income for the year 2025 was $93.4 billion, down from $106.4 billion in the previous year.

The decline in profits comes as the global oil market is experiencing turmoil due to the ongoing conflict between the US, Israel, and Iran.

Saudi Aramco's CEO, Amin Nasser, warned of a 'catastrophic' impact on the global oil market if the conflict continues to disrupt the Strait of Hormuz, a crucial oil shipping route.

In response to the economic downturn, Saudi Aramco has announced its first-ever stock buyback program, worth $3 billion.

The buyback program will be implemented over the next 18 months, with the company's CFO, Ziad Al-Murshed, stating that the repurchased shares will be allocated to its employees.

Saudi Aramco's operating costs have risen by 20.5% in the fourth quarter, resulting in a net income of $17.8 billion, down from $22.4 billion in the same quarter last year.

The company's revenue has declined by 7.2% to $415.8 billion, mainly due to the drop in oil prices and lower demand for refined products and petrochemicals.

Saudi Aramco's CEO, Amin Nasser, expects the global oil demand to reach a record 107.3 million barrels per day in 2026, driven by increased demand for transportation fuels and petrochemicals.

As the largest contributor to Saudi Arabia's government revenue, Saudi Aramco's economic performance is closely watched by investors and policymakers alike.