Saudi Arabian Oil Company (2222) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $26.0 billion, up 16% sequentially but down 5% year-on-year, reflecting robust performance amid lower oil prices and global economic uncertainty.

• Free cash flow reached $19.2 billion, with cash flow from operations at $31.7 billion, and gearing at 5.3%, the lowest among peers.

• Declared a Q1 base dividend of $21.1 billion, up 4.2% year-on-year, plus a $220 million performance-linked dividend.

• Strategic investments included a 25% stake in Unioil Philippines and 50% in Blue Hydrogen Industrial Gases Company, with continued expansion in solar and carbon capture.

• New oil and gas discoveries and progress in gas, LNG, and new energies support long-term growth.

Financial highlights

• Q1 2025 net income: $26.0 billion (down 5% year-on-year, up 16% sequentially); free cash flow: $19.2 billion.

• Upstream EBIT: $51.4 billion, up 2% sequentially, down 6% year-on-year; Downstream EBIT: $0.5 billion, up sequentially but down year-on-year.

• Revenue for Q1 2025 was $97.5 billion, down from $102.3 billion in Q1 2024; operating income was $51.0 billion.

• ROACE for the trailing 12 months was 19.9%, about twice the industry average.

• Gearing ratio increased to 5.3% as of March 31, 2025, from 4.5% at end of 2024.

Outlook and guidance

• Maintains 2025 CapEx guidance of $52–$58 billion, with flexibility to adjust based on market conditions.

• Ready to increase crude production up to 12 million barrels per day if required, with minimal incremental cost.

• Gas production expected to increase over 60% by 2030, with Jafurah phase one online by year-end and phase two by 2027.

• Confident in long-term oil demand fundamentals, supported by strong petrochemical and transport fuels demand.

• Focus on disciplined capital planning, emissions reduction, and innovation in new energies.