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, with free cash flow at $19.2 billion and a robust balance sheet featuring 5.3% gearing, the lowest among peers.

• Q1-based dividend declared at $21.1 billion, a 4.2% year-on-year increase, plus a $220 million performance-linked dividend, both to be paid in May.

• Strategic investments included a 25% stake in UniOil Philippines, 50% in Blue Hydrogen Industrial Gases Company, and expansion in solar PV projects reaching 4.2 GW operational capacity.

• Demonstrated resilience despite an 8% drop in crude oil prices year-on-year, with net income down only 5%.

• New oil and gas discoveries and progress in gas and LNG projects support long-term growth.

Financial highlights

• Q1 2025 net income: $26.0 billion (down 5% y/y); free cash flow: $19.2 billion; revenue: $97.5 billion; operating income: $51.0 billion.

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

• Capital expenditures totaled $12.5 billion for the quarter, up from $10.8 billion year-on-year.

• ROACE (12 months rolling): 19.9%.

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

Outlook and guidance

• CapEx guidance for 2025 remains at $52–$58 billion, with flexibility to adjust based on market conditions and production needs.

• Ready to increase crude production up to 12 million barrels per day if required, with each 1 million bpd of spare capacity potentially adding $12 billion in operating cash flow at 2024 prices.

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

• Blue ammonia target revised to 2.5 million tons, with construction contingent on offtake agreements.

• Continued focus on disciplined capital planning and execution to support long-term growth.