Saudi Arabian Oil Company (2222) Q4 2025 earnings summary

Executive summary

• Achieved adjusted net income of $105 billion for FY2025, with ROACE at 20%, maintaining industry-leading returns despite a 14% drop in oil prices and delivering consistent operational performance and increased shareholder returns.

• Total hydrocarbon production rose to 12.9mmboed, with liquids production up 0.4mmbpd and gas production up 0.6bscfd compared to FY2024.

• Delivered four major upstream projects, including Marjan, Berri, Tanajib, and Jafurah Phase 1, and set new records in safety and operational performance.

• Technology initiatives generated $11.3 billion in realized value since 2023, with about half from AI solutions and localization in procurement reaching 70%.

• Maintained operational resilience amid regional disruptions, leveraging contingency plans and flexible hydrocarbon operations.

Financial highlights

• Adjusted net income reached $105 billion, with ROACE around 20%, and operating cash flow was $136.2 billion, both up from 2024.

• Free cash flow stood at $85.4 billion, and capital investment was $52.2 billion, $1 billion lower than 2024.

• Gearing improved to 3.8%, reflecting a strong balance sheet and investment-grade credit rating.

• Quarterly base dividend increased to $21.9 billion, with a 3.5% increase in Q4 and a $2-$3 billion share buyback program announced.

• FY2025 revenue was $445.7 billion, down from $480.4 billion in 2024, mainly due to lower crude oil prices.

Outlook and guidance

• 2026 capital investment guidance is $50-$55 billion, with capex peaking in 2026 before moderating.

• Targeting up to $25 billion combined operating cash flow from gas growth and downstream by 2030.

• Expecting 1.1-1.4 MMbpd demand growth in 2026, with SNB estimating 107.3 MMbpd.

• Disciplined capital allocation: 65%-70% upstream, 20%-25% downstream, 5%-10% new energies.

• Ongoing investments in gas and crude oil projects to meet rising demand and support future cash flow growth.