Saudi Aramco made a profit of $104.7 billion for the year, exceeding expectations. The CEO stated that multiple contingency plans have been developed for the situation in the Middle East

Saudi Aramco's disclosed full-year performance for 2025 shows an adjusted net profit of $104.7 billion, exceeding market expectations. The company's CEO Amin Nasser issued a stern warning regarding the geopolitical situation in the Middle East, pointing out that supply disruptions have caused a ripple effect on the global oil market and various industries, emphasizing that the restoration of shipping through the Strait of Hormuz is crucial for ensuring global energy supply. On Tuesday, Amin Nasser expressed deep concern over the high-risk situation faced by the local population, noting that global idle crude oil production capacity is mainly concentrated in the region, and if supply disruptions persist, the impact on the global oil market and economy will further intensify. He also revealed that the company has developed emergency plans for various scenarios, with the only available channel being the east-west pipeline with a capacity of 7 million barrels per day, and there are no issues with domestic and international storage capacity. Against the backdrop of geopolitical crises, international oil prices recently surged to nearly $120 per barrel. Nasser warned that global inventories are at a five-year low, and the pace of inventory drawdown will accelerate in the future, with supply disruptions causing serious ripple effects in shipping and insurance, affecting industries such as aviation, agriculture, and automotive. Performance Exceeds Expectations, Dividends Continue to Grow Saudi Aramco announced its full-year performance for 2025, with an adjusted net profit of $104.7 billion, stating it achieved "robust growth." The adjusted net profit for the fourth quarter was $25.1 billion, slightly above the market expectation of $24.8 billion. Cash flow performance was strong, with full-year free cash flow recorded at $85.4 billion and operating cash flow at $136.2 billion. Full-year capital expenditures were $52.2 billion, in line with company guidance and slightly lower than the 2024 level. In terms of shareholder returns, the company announced a fourth-quarter base dividend of $21.89 billion, a year-on-year increase of 3.5%, which will be paid in the first quarter of 2026. Total shareholder distributions for the year reached $85.5 billion. Additionally, Saudi Aramco has initiated a stock repurchase program of up to $3 billion, lasting 18 months. Saudi Aramco CEO Amin Nasser stated in the earnings announcement: "Strict capital allocation, combined with low-cost, high-reliability operations, has driven the company to achieve strong financial performance in a year of oil price volatility." Emergency Deployment: Pipeline Alternatives and Global Storage Dual Approach To address the obstruction of passage through the Strait of Hormuz, Nasser disclosed the company's emergency arrangements. The only available east-west pipeline is currently transporting Arab light and ultra-light crude oil at a capacity of 7 million barrels per day. At the same time, the company has ensured sufficient domestic and international storage capacity and can maintain continuous supply to customers through global storage centers. To further strengthen supply capabilities, Saudi Aramco has put into production four upstream projects, including Berri, Marjan, and Jafurah Phase I. Nasser stated that the company has developed contingency plans for various scenarios to ensure the storage system has sufficient flexibility, and said, "In the current situation, we are doing our utmost to meet the needs of most customers."