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Business Score 85 Cautious

Saudi Aramco Reports 12% Drop in Annual Profits to $104.7 Billion Amid Sluggish Oil Demand

Mar 10, 2026 08:00 UTC
CL=F, XOM, CVX, ^VIX
Short term

Saudi Aramco’s annual net profit declined 12% to $104.7 billion in 2025, marking the first significant drop in years as global oil demand pressures and moderating crude prices weighed on results. The decline underscores growing challenges in the energy sector despite the company’s dominant position in global supply.

  • Saudi Aramco’s 2025 net profit: $104.7 billion, down 12% from $119.1 billion in 2024
  • Average Brent crude price in 2025: $73.80 per barrel, down from $85+ in 2024
  • Crude oil futures (CL=F) declined 11% year-over-year
  • ExxonMobil (XOM) and Chevron (CVX) shares fell 1.7% and 2.1% post-results
  • S&P 500 Energy Sector index dropped 1.4% on the news
  • VIX volatility index rose to 18.6, reflecting heightened market uncertainty

Saudi Aramco recorded a net profit of $104.7 billion for the fiscal year 2025, down 12% from the previous year’s $119.1 billion, according to public financial disclosures. The decrease is attributed to a sustained period of lower crude oil prices, with the average Brent crude benchmark trading below $75 per barrel in the final quarter, a notable drop from the $85+ levels seen in 2023 and early 2024. Despite maintaining production volumes near 12 million barrels per day, revenue compression eroded margins across refining and marketing segments. The company’s performance reflects broader trends in global energy markets, where economic slowdowns in key importers such as China and the European Union have dampened oil consumption. Meanwhile, the shift toward renewable energy and improved fuel efficiency in transportation sectors has reduced long-term demand outlooks. This has put downward pressure on the price of crude, as reflected in the CL=F futures contract, which closed 2025 at $73.80 per barrel—11% below the 2024 average. Energy equities reacted to the news, with ExxonMobil (XOM) and Chevron (CVX) shares falling 1.7% and 2.1% respectively in early trading, signaling broader investor concerns about margin sustainability. The S&P 500 Energy Sector index dipped 1.4%, while the VIX volatility index rose to 18.6, indicating increased market uncertainty surrounding commodity pricing and global economic stability.

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