Wednesday, March 5, 2025 – By Wadah Haidar, Al-Khaleej Online
Despite challenges in the oil market over the past period, the impact of declining prices on Aramco was only half as severe as that experienced by other oil companies.
Saudi Aramco continues to solidify its position as one of the most profitable companies in the world, reinforcing its leadership in the global energy market.
This global standing remains strong despite a 12.39% decline in the company’s net profit in 2024, reaching approximately 398.42 billion riyals ($106.25 billion), compared to 454.76 billion riyals ($121.27 billion) in 2023.
This decline is primarily attributed to lower crude oil prices and sales volumes, as well as decreasing prices of refined and petrochemical products.
Overcoming Challenges
Aramco remains committed to addressing new challenges in the energy sector while maintaining its leadership by ensuring reliable energy supplies and developing solutions that support sustainable growth.
Company officials affirm that Aramco’s strategies focus on balancing global market demands while sustaining long-term operational efficiency.
In a statement published on the Saudi stock exchange, Tadawul, on Tuesday, March 4, the company explained that the profit decline was mainly due to lower revenue and sales-related income, higher operating costs, and decreased financial income. However, this was partially offset by a reduction in income taxes and zakat.
Total revenue for the year ending December 31, 2024, reached 1.637 trillion riyals ($436.61 billion), compared to 1.653 trillion riyals ($440.88 billion) in 2023.
Resilience and Future Outlook
Ziad Al-Murshed, Aramco’s Executive Vice President and Chief Financial Officer, stated:
“Despite the challenges in the oil market, the impact of price declines on Aramco was only half as severe as on other oil companies.”
In an interview with Al Arabiya Business, Al-Murshed emphasized that this reflects the company’s ability to adapt to global market fluctuations. He also projected that global oil demand will continue to rise in 2025, estimating that it will reach 106.1 million barrels per day by the end of next year.
He added:
“Our profits and cash flows place us among the most profitable publicly listed companies in 2024, with net earnings exceeding 398 billion riyals ($106 billion).”
Aramco plans to continue investing in advanced technologies to enhance efficiency while balancing production levels and ensuring long-term sustainability.
Al-Murshed stressed that:
“Aramco is prepared to face new challenges and will remain a leader in the energy sector, committed to meeting the world’s energy needs and developing solutions that support sustainable growth.”
Expansion in Refining and Gas Production
He also highlighted that Aramco’s projects in the refining and chemicals sector are expected to generate an additional $10 billion annually by 2030. Moreover, the company aims to increase its gas production capacity by 60% by 2030, compared to 2021 levels.
Through strategic investments and innovation, Aramco continues to strengthen its dominance in the global energy sector, ensuring long-term growth and resilience in an evolving market.
Profitability Strategies: How Aramco Maintains Its Market Dominance
Saudi Aramco remains one of the world’s most influential oil companies, holding exclusive rights to extract 10 million barrels of oil daily, along with billions of cubic meters or metric tons of natural gas.
The Saudi government directly owns 81.5% of Aramco’s shares, while the country’s sovereign wealth fund controls an additional 16% stake.
To strengthen its global energy market leadership, Aramco has adopted several key strategies, including an integrated approach between the oil and petrochemical industries. This strategy enhances the company’s resilience against oil price fluctuations and ensures business sustainability.
Additionally, Aramco is expanding its gas operations both domestically and internationally, boosting its ability to meet diverse market demands.
The company is also enhancing its competitiveness through collaborations with energy producers, engineering firms, service providers, equipment manufacturers, research institutions, and universities.
Oil Market Challenges and Profit Decline
According to Reuters, analysts at Citigroup noted in a research memo that declining profits were inevitable due to uncertain oil market conditions in 2025. They also expressed doubts about the market’s ability to absorb increased production without negatively impacting prices.
Similarly, JPMorgan reported that Aramco’s profits are expected to drop to 4.9% this year, compared to over 6% in 2024, due to falling oil prices.
Robert Mogielnicki, a senior researcher at the Arab Gulf States Institute in Washington, told Al-Monitor that oil prices remain below the levels Gulf governments, including Saudi Arabia, had hoped for.
“While energy market fundamentals are still stable, Saudi Arabia is not generating oil revenues that significantly exceed its needs or allow for excessive reinvestment in development projects,” he added.
Aramco is not the only major energy company experiencing profit declines. Shell reported a 17% drop in profits last year, while TotalEnergies saw a 26% decline in earnings.
Despite these challenges, Aramco continues to implement strategic measures to maintain its profitability and industry leadership in an evolving global energy landscape.
The World’s Most Profitable Companies: Aramco Leads the Rankings
Globally, the most profitable companies are dominated by the technology, energy, and financial sectors, with Saudi Aramco securing the top position, surpassing Apple.
According to Visual Capitalist, based on data from Fortune magazine, some publicly traded companies generate profits greater than the GDP of certain nations, highlighting their significant role in their respective economies.
Top Companies by Profitability
- #1 Saudi Aramco – Maintained its dominance in global profitability, outperforming Apple.
- #2 Apple – Reported $97 billion in earnings, driven by strong iPhone sales and high margins from digital services.
- #3 Berkshire Hathaway – Recorded $96.2 billion in profit, benefiting from a strong financial performance, which also propelled it into the trillion-dollar market cap club.
- #4 Alphabet (Google’s Parent Company) – Earned $73.8 billion, securing its position among the top tech giants.
- #5 Microsoft – Posted $72.4 billion in profit, fueled by growing demand for cloud computing and AI-driven products.
Banking Sector Leaders
- Industrial and Commercial Bank of China (ICBC) – $51.4 billion
- JPMorgan Chase (USA) – $49.6 billion
- China Construction Bank – $47 billion
- Agricultural Bank of China – $38 billion
- Bank of China – $32.8 billion
These figures highlight the dominance of Chinese banks in the global financial sector.
Technology and Semiconductor Giants
- Meta (Facebook’s Parent Company) – $39.1 billion
- Nvidia – $29.8 billion, driven by huge demand for AI chips
- Taiwan Semiconductor Manufacturing Company (TSMC) – $27.4 billion, reinforcing its key role in the semiconductor industry
Energy and Automotive Sectors
- ExxonMobil (USA) – $36 billion
- Petrobras (Brazil) – $24.9 billion
- Toyota (Japan) – $34.2 billion, leading the automotive industry
Retail and Healthcare Leaders
- Amazon – $30.4 billion, maintaining its dominance in e-commerce
- Johnson & Johnson – $35.2 billion, leading the healthcare sector
With Aramco at the top, this ranking underscores the significant influence of energy, technology, and financial giants on the global economy.
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