Oil giant Saudi Aramco reported a 4.6% drop in net profit for the first quarter, with lower sales and higher operating costs hitting the main pillar of the kingdom's ambitious economic reform plans.
Profit fell due to "lower revenues and other sales-related income, as well as higher operating expenses," according to a statement published by the Saudi stock exchange and quoted by AFP.
"Global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices," Aramco President Amin H. Nasser said.
Net profit for the first quarter of the year was 97.54 billion riyals ($26.01 billion), compared with 102.27 billion riyals ($27.27 billion) for the same period in 2024.
Oil prices have fallen sharply in recent weeks due to concerns that US President Donald Trump's tariffs will hit demand hard and stifle international trade.
The Saudi government owns 81.5% of Aramco's shares and relies on the proceeds to finance the Vision 2030 projects launched by Crown Prince Mohammed bin Salman.
Saudi Arabia, which is striving for a post-oil future, is in the process of implementing a lavish spending plan aimed at attracting tourists and investment to the Middle East's largest economy.
Among the most ambitious projects are NEOM, a futuristic new city in the desert worth $500 billion, the 2034 World Cup, and a new major airport for Riyadh.
Aramco reported record profits in 2022 after Russia's invasion of Ukraine led to a surge in oil prices, allowing Saudi Arabia to post its first budget surplus in nearly a decade.
But the Saudi "cash cow's" profits have fallen in recent years with the decline in oil prices.
In September, the Saudi Ministry of Finance said it expected a budget deficit of 2.3% of GDP in 2025, with the deficit continuing until 2027. | BGNES