Company Reports

Saudi Aramco’s size and cost position give it a unique place among other publicly listed oil companies as the world’s largest oil producer. Low operating and capital costs place its reserves at the bottom of the global cost curve and deliver peer-leading returns on capital, leaving Aramco as the only oil producer to earn a wide moat rating.

Saudi Aramco reported second-quarter adjusted net income of $33.4 billion, up 33% year on year, as favorable market conditions offset lower hydrocarbon production. But free cash flow of $12.3 billion remained 20% below last year's levels, and gearing rose sequentially to 6.2%.

Aramco's first-quarter net income of $33.6 billion was in line with market expectations and up 34% sequentially, supported by higher oil prices and refining margins. Gearing rose to 4.8% from 3.8% at year-end 2025, while free cash flow declined 32%.

Saudi Aramco’s size and cost position give the company a unique place among all other publicly listed oil companies as the world’s largest oil producer. Low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving Aramco as the sole oil producer to earn a wide moat rating.

Aramco reported fourth-quarter net income of $25.1 billion, which fell only slightly from the year before as higher volumes and strong operations helped offset lower oil prices. Gearing fell to 3.8% from 4.5% the year before and 6.3% in the third quarter.

Saudi Aramco reported third-quarter net income of $27 billion, down 2.3% year over year, as lower oil prices more than offset growth in hydrocarbon production and a strong downstream performance. The company narrowed its capital spending guidance and is on track to meet its full-year payout targets.

We've updated our midcycle oil price assumption. Our 10-year forecast marries our bullish in-house oil demand view with Rystad's supply projections, which align with our revised, long-term take.

Aramco’s size and cost position give the company a unique place among all other publicly listed oil companies as the world’s largest oil producer. Low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving Aramco as the sole oil producer to earn a wide moat rating.

Saudi Aramco reported second-quarter net income of $23 billion, down 22% year on year and 13% sequentially, on lower oil prices. Gearing increased to 6.5% from 5.3% at the end of last quarter and negative 0.5% last year.

Aramco’s size and cost position give the company a unique place among all other publicly listed oil companies as the world’s largest oil producer. Low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving Aramco as the sole oil producer to earn a wide moat rating.

Saudi Aramco reported first-quarter results ahead of market expectations. Net income fell to $26 billion, down 4.6% year on year, on lower oil prices and weaker refining margins. Gearing increased to 5.3% from 4.5% at year-end.

Saudi Aramco reported 2024 net income fell 12% from last year, due to lower realizations, volumes, and negative downstream results. It will increase the base dividend 4.2% to $84.6 billion but is reducing performance-linked dividends to $0.9 billion in 2025 from $43.1 billion in 2024.

Aramco's third-quarter net income fell to $27.6 billion from $32.6 billion a year ago due to lower volumes and realizations and weaker downstream results. Dividends of $31.1 billion exceeded free cash flow, resulting in gearing rising to 1.9% from negative 6.3% at year-end 2023.

Aramco’s size and cost position give the company a unique place among all other publicly listed oil companies as the world’s largest oil producer. Low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving Aramco as the sole oil producer to earn a wide moat rating.

Wide-moat Aramco reported second-quarter net income of $29.1 billion compared with $30.1 billion the year prior, primarily due to lower volumes and weaker downstream results, which offset higher price realizations. Total hydrocarbon volumes fell to 12.3 million barrels of oil equivalent per day from 13.5 mmboe/d in the corresponding period last year. Refining and chemical margins remained weak relative to the year before, sending the segment to a $262 million loss from earnings of $788 million last year. With no changes to our forecasts, we maintain our SAR 30.00 fair value estimate.

Saudi Aramco’s first-quarter net income fell to $27.3 billion from $31.9 billion the year before largely on lower volumes and weaker refining and chemical margins. Total hydrocarbon volumes decreased to 12.4 million barrels of oil equivalent per day from 12.8 mmboe/d last year. Free cash flow decreased to $22.8 billion in the quarter from $30.9 billion in the prior year while net debt rose to negative $16.7 billion from net debt of negative $27.4 billion at end-2023, implying a gearing ratio of negative 3.8%. We maintain our fair value estimate of SAR 30.00 and wide moat rating for Aramco.

Aramco’s size and cost position give the company a unique place among all other publicly listed oil companies as the world’s largest oil producer. Low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving Aramco as the sole oil producer to earn a wide moat rating.

Aramco reported net income of $121.3 billion in 2023 compared with $161.1 billion the year prior due to lower oil prices and volumes as well as weaker refining and chemical margins. Total hydrocarbon volumes decreased to 12.8 million barrels of oil equivalent per day from 13.6 mmboe/d in 2022. Despite the decline in earnings, management increased the base quarterly dividend to $20.3 billion for the fourth quarter of 2023, to be paid in the first quarter of 2024. The firm will also pay a full-year performance-linked dividend for the second straight year, expected to be $43.1 billion in 2024, of which $10.8 billion will be paid in the first quarter. The regular quarterly and performance dividends imply a forward yield of 6.0%, bringing the payout more in line with peers.

Aramco’s size and cost position give the company a unique place among all other publicly listed oil companies as the world’s largest oil producer. Low operating and capital costs place its reserves at the bottom of the global cost curve and result in peer-leading returns on capital, leaving Aramco as the sole oil producer to earn a wide moat rating.

Saudi Aramco's third-quarter net income fell to $32.6 billion from $42.4 billion the year before largely on lower oil prices and volumes. Total hydrocarbon volumes decreased to 12.8 million barrels of oil equivalent per day from 14.4 mmboe/d last year. Free cash flow decreased to $20.3 billion in the quarter from $45.0 billion in the prior year. Net debt fell to negative $33.0 billion from net debt of negative $32.7 billion at end-2022, but the gearing ratio rose to negative 7.6% from negative 7.9%. We maintain our fair value estimate of SAR 30.50 and wide moat rating for Aramco.