Saudi Energy Companies in 2025: Billion-Dollar Profits Defy Market Volatility

Saudi and foreign investors stand in front of the logo of the giant Saudi oil company Aramco during the 10th Global Competitiveness Forum (AFP)
Saudi and foreign investors stand in front of the logo of the giant Saudi oil company Aramco during the 10th Global Competitiveness Forum (AFP)
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Saudi Energy Companies in 2025: Billion-Dollar Profits Defy Market Volatility

Saudi and foreign investors stand in front of the logo of the giant Saudi oil company Aramco during the 10th Global Competitiveness Forum (AFP)
Saudi and foreign investors stand in front of the logo of the giant Saudi oil company Aramco during the 10th Global Competitiveness Forum (AFP)

In 2025, the Saudi energy sector demonstrated a superior ability to fortify its financial gains and navigate global market fluctuations, achieving a net profit exceeding $92.5 billion (347.2 billion riyals). Despite pressures imposed by the global supply-and-demand equation and supply chain disruptions, the financial results of listed companies revealed a strategic shift in performance. Price momentum for oil was no longer the sole driver; instead, operational efficiency and smart hedging emerged as safety valves that ensured the continuity of massive cash flows, with revenues exceeding $430 billion.

While profits recorded a relative decline of approximately 11.5 percent compared to the exceptional year of 2024, when they reached $104.62 billion (392.58 billion riyals), the results showed a positive variance for logistics and drilling companies such as "Bahri" and "ADES." This indicates a new phase of operational maturity and diversification of income sources within the region's most vital sector.

This decline in sector profits is attributed to the falling earnings of "Saudi Aramco," the heaviest weight in the Saudi market index. Other sector companies were also affected by multiple challenges, including declining revenues, lower sales, and reduced dividend distributions from investment portfolios.

Variance in Company Profits

Financial results for energy sector companies showed a variance in performance: profits rose for two companies, declined for one, and another narrowed its losses. Additionally, one company continued its losses, while another shifted to a loss after recording profits during 2024.

In detail, "Saudi Aramco" achieved the highest profit margin among sector companies, reaching $92.75 billion (348.04 billion riyals) during 2025, despite a decline of 11.64 percent compared to the previous year. The company attributed this decline to lower revenues and sales-related income, though this was partially offset by a decrease in operating costs and lower income taxes and Zakat. "Bahri" ranked second with profits of $647.58 million (2.43 billion riyals) during 2025, a growth of 0.12 percent compared to the previous year's profits of $578.29 million (2.17 billion riyals). The company attributed its profit growth to higher total quarters for the oil transport sector and improved operational performance and global freight rates.

"ADES" came in third with profits reaching $218.13 million (818.5 million riyals), achieving a growth of 2 percent compared to the previous year. The company stated that the rise in net profit reflected an increase in depreciation and interest expenses relative to revenues, in addition to gains recorded in the third quarter under "profits from equity instruments at fair value through profit or loss," the impact of which was largely dissipated by costs related to an acquisition deal.

A man passes by the Saudi Stock Exchange logo (Reuters)

Sector Revenues

At the revenue level for sector companies during 2025, there was a decline of approximately 4.74 percent, recording revenues of about $430.12 billion (1.61 trillion riyals) compared to $450.4 billion (1.69 trillion riyals) in 2024, a decrease of $21.44 billion (80.45 billion riyals).

Commenting on these results, Dr. Sulaiman Al-Humaid Al-Khaldi, financial market analyst and member of the Saudi Economic Association, told Asharq Al-Awsat that the energy sector is strategic and vital to the Saudi economy, and these results reflect the continued high profitability of sector companies despite the relative decline. He described this decline as "natural" following the exceptional levels of 2024, reflecting the moderation of oil prices compared to the previous year, alongside the OPEC+ alliance's commitment to production cut policies to support balance.

He noted the decline in revenues resulted from lower prices and volumes despite remaining at strong levels, as well as rising operational and investment costs for some companies, particularly in expansion and renewable energy projects. Conversely, companies like "Bahri" and "ADES Holding" showed positive performance supported by growth in demand for maritime transport and drilling services, reflecting a diversification of profitability sources within the sector.

Al-Khaldi expected the sector to remain stable in the near term with a slight inclination toward growth, supported by several factors including continued global oil supply management to support prices within a balanced range, and Aramco’s expansion into gas, clean energy, and petrochemicals, reducing reliance solely on crude oil. He also noted the improved performance of service companies (drilling and transport) with the increase in regional projects.

Over the medium to long term, he expected the future of sector companies to carry a strategic shift toward focusing on diversifying energy sources through hydrogen and renewables, enhancing operational efficiency, and reducing costs. He highlighted that companies would benefit from Saudi Vision 2030 in supporting investments and infrastructure, noting that the sector remains strong and profitable, and the current decline is a healthy correction after a historical peak, while the trend toward diversification and sustainability will be the primary driver for growth in the coming years.

Operational Factors

For his part, Mohammed Hamdi Omar, CEO of "G-World," told Asharq Al-Awsat that the economic reading of these figures indicates the Saudi energy sector has not lost its strength but has entered a more complex phase than merely achieving high profits.

He added: "We are facing a sector that is still achieving massive profitability levels exceeding 347 billion riyals, but the more important picture is that growth is no longer based on price momentum alone; it has become more sensitive to operational factors, global demand, refining margins, and the variance in performance of companies within the sector."

He explained that the reasons for the decline in sector profits "stem from the exceptional weight of 'Aramco' within the sector; it is not just a company within the sector, but the main driver of the entire financial picture, and any decline in its revenues or profits is automatically reflected in the overall index. Furthermore, the sector did not move as a single bloc; some companies benefited from improved activity or the strength of their business models, such as 'Bahri' and 'ADES,' while others faced clear operational or market pressures. This reflects that the challenge is no longer just in the sector as a whole, but in the quality of positioning within it."

Omar noted that the "decline in total sector revenues indicates that the global energy market has entered a more volatile phase, where high prices alone are no longer sufficient to ensure a balanced improvement in results. Today, operational management, the ability to hedge, diversification of income sources, and supply chain efficiency have become factors no less important than the price itself. Therefore, those who read these results as merely an annual decline in profits are oversimplifying the picture; more accurately, it is an expression of the sector's transition from a phase of easy rents to a phase of more complex operational competition."

Regarding the future financial results of energy companies, he indicated that the sector "will remain a fundamental pillar of the Saudi economy and financial market, but the difference in the coming phase will be between companies that have the ability to adapt to global volatility and those that remain captive to the price cycle. In other words, the future belongs not just to those with scale, but to those with flexibility, financial discipline, and the ability to turn volatility into opportunity."

He viewed the outlook for the coming period as "positive" at the sector level, "but more precise at the company level, as gains will not be distributed equally, but will instead gravitate toward the most efficient, integrated companies that are best able to manage risks in a global environment that remains turbulent."



Yanbu Commercial Port Boosts Operational Efficiency by Serving 11 Vessels Simultaneously

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
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Yanbu Commercial Port Boosts Operational Efficiency by Serving 11 Vessels Simultaneously

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)
The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system. (SPA)

Saudi Arabia’s Yanbu Commercial Port achieved a new operational milestone by successfully serving 11 vessels simultaneously of various sizes and cargo capacities, reflecting the port's high level of operational readiness, reported the Saudi Press Agency on Monday.

The achievement underscores the efficiency of the port's operations and its ability to manage maritime and commercial traffic with a high degree of effectiveness.

It contributes to smoother import and export activities and supports the continuity of supply chains in accordance with the highest operational and logistical standards.

The accomplishment builds on the vital role of Yanbu Commercial Port in strengthening Saudi Arabia's maritime transport system and reinforcing its position as a key logistics hub on the Red Sea coast.

It also supports economic growth and enhances the competitiveness of the maritime and commercial sectors.


IMF Ready to Help Africa Weather Middle East Shock, Says Zeidane

 Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)
Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)
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IMF Ready to Help Africa Weather Middle East Shock, Says Zeidane

 Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)
Workers sort avocados for export to Chinese markets, at the Sunripe fresh fruits exporters factory in Limuru district of Kiambu County near Nairobi, Kenya June 4, 2026. (Reuters)

The International Monetary Fund's new Africa chief, Zeine Zeidane, said that conflict in the Middle East has created difficulties for sub-Saharan Africa but reaffirmed the fund's commitment to aiding nations under economic strain.

Zeidane, who assumed his role as Director of the IMF's African Department on May 1, oversees operations and engagement with 45 countries across the region.

"My immediate priority is really to help countries in ‌the region to weather ‌this shock," Zeidane said at ‌a ⁠media briefing.

The IMF ⁠has already reached staff-level agreements to provide augmented financing in response to the conflict's effects for Burkina Faso, The Gambia and São Tomé and Príncipe.

For Ethiopia, which has a large IMF program in place, Zeidane said the fund accelerated about $200 million ⁠in financing.

Zeidane warned that disruptions linked to ‌the Middle East conflict could ‌take months to resolve, noting that a ceasefire was already ‌in place but that Gulf nations had ‌indicated it typically takes six to seven months for production and exports to resume fully.

He added that the Middle East's role as a significant exporter of fertilizers would have ‌far-reaching implications for Africa's food security and production costs.

Despite immediate challenges, Zeidane expressed ⁠optimism over ⁠sub-Saharan Africa's long-term prospects, noting that prior to the current crisis, the region was among the fastest-growing globally and had made strides in fiscal consolidation.

"The future, the next growth engine for the world, will be Africa," he said. "We need to support Africa to unlock its potential."

Zeidane, who began his IMF career in 2012, previously served as Mauritania's prime minister, central bank governor and economic adviser to the president. He succeeded Abebe Aemro Selassie, who retired from the IMF in May.


The High Cost of Hormuz: $37 Billion Shock Exposes Iraq’s Economic Vulnerability

A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026.  (Reuters)
A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)
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The High Cost of Hormuz: $37 Billion Shock Exposes Iraq’s Economic Vulnerability

A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026.  (Reuters)
A drone view shows oil trucks arriving from Iraq on their way to the Baniyas oil terminal, Syria, May 14, 2026. (Reuters)

The recent regional war and the closure of the Strait of Hormuz have pushed Iraq’s economy into one of its most serious crises in decades. The massive financial losses are more than just another consequence of regional conflict; they have exposed Iraq’s near-total dependence on a single maritime export route.

As Baghdad struggles to finance public-sector salaries through domestic borrowing and the use of foreign-exchange reserves, the crisis has renewed scrutiny of years of poor planning, corruption, and political obstruction of strategic projects, such as the Basra-Aqaba oil pipeline, initiatives that could have provided alternative export routes and a safety net for the country’s most important source of income.

Financial and energy analysts estimate Iraq’s losses at more than $37 billion, a severe blow to an economy that relies overwhelmingly on oil revenues.

The disruption has forced authorities to draw on domestic debt and accumulated reserves to cover monthly salary and pension obligations estimated at roughly $6.5 billion.

Slow recovery

Although the conflict appears to be winding down and the Oil Ministry has expressed optimism about resuming production, energy experts caution that Iraqi oil fields may require months to return to their prewar output levels.

Before the crisis, Iraq produced more than 4.2 million barrels per day, including approximately 3.5 million barrels exported to international markets.

Observers said the consequences extend beyond the immediate financial shock caused by the freezing of oil revenues. The conflict revealed a “dangerous strategic vulnerability”: Iraq’s overwhelming reliance on southern Gulf export terminals and the Strait of Hormuz as the sole outlet for its most valuable resource.

The crisis has also revived debate over decades of mismanagement and inadequate planning in one of the country’s most vital economic sectors.

Oil trucks arrive from Iraq, on their way to the Baniyas oil terminal, in Qamishli, Syria, May 11, 2026. (Reuters)

A single export gateway

Over previous decades, Iraq possessed several overland export routes, including the Kirkuk–Ceyhan pipeline to Türkiye, the Iraq-Saudi pipeline, and the historic Kirkuk-Haifa and Kirkuk-Baniyas lines. Most have been out of service for years because of wars, political instability, and security challenges.

Successive governments sought to revive export diversification. Among the most significant proposals was the Basra-Aqaba pipeline, championed during the administration of former Prime Minister Mustafa Al-Kadhimi. The project would transport crude oil from southern Iraq to Jordan’s Red Sea port of Aqaba.

Energy specialists regard it as a strategic asset that could have reduced Iraq’s dependence on Gulf shipping routes. Political disputes and regional pressures, however, prevented its implementation.

Limited alternatives

As the crisis intensified and oil revenues dwindled, Iraq attempted to expand exports through Türkiye, Syria, and Jordan. Energy experts said those efforts achieved only marginal results.

Contrary to reports that Iraq was exporting oil through 700 tanker trucks through Syria, former Oil Ministry spokesman Asim Jihad said exports through Syrian territory amount to no more than 200 tankers per day.

He told Asharq Al-Awsat that Iraq is exporting fuel oil rather than crude oil through Syria to avoid bottlenecks at producing fields.

Such shipments, he added, are operationally complex and generate only limited revenue compared with normal export volumes.

On the northern route, Jihad noted that Iraq exports between 150,000 and 200,000 barrels per day through the Kurdistan Region’s pipeline to the port of Ceyhan in Türkiye.

Meanwhile, the older federal pipeline linking Kirkuk to Ceyhan remains out of service because of extensive damage that has yet to be repaired.

A drone view shows the Rumaila oil field in Basra, Iraq, June 8, 2026. (Reuters)

Jihad expressed little optimism that Iraq can establish major alternative export corridors outside the Gulf in the near future, citing time constraints, high costs, and political complications.

He also voiced uncertainty about negotiations with Ankara over future export agreements through Ceyhan, particularly as existing arrangements are set to expire at the end of July.

“The only option left for Iraq is to hope that no new conflict erupts in the Gulf that would once again close the Strait of Hormuz and deprive the country of its primary source of income,” he added.

Cost of the blockade

The Eco Iraq Observatory estimated that Iraq has lost roughly 350 million barrels of oil exports since the Strait of Hormuz was closed on February 28, representing missed sales worth approximately $37.7 billion at average market prices during the period.

According to the organization, Iraq had been exporting between 103 million and 107 million barrels of crude oil per month before the closure. Export losses reached 84.4 million barrels in March, 93.1 million in April, 92.8 million in May, and 79.6 million in June.

Eco Iraq argued that the “New Levant” initiative — a regional economic integration project involving Iraq, Jordan, and Egypt — has become a strategic necessity.

The plan envisions deeper economic cooperation, infrastructure links, and alternative export routes, including the shipment of Iraqi oil through Jordan to Egyptian ports, reducing dependence on geopolitically vulnerable maritime corridors.