Saudi Arabian Oil Company (2222) Q4 2025 earnings summary

Executive summary

• Delivered consistent operational performance and industry-leading earnings in 2025, with adjusted net income of $105 billion and ROACE of 20%, maintaining returns despite a 14% oil price drop.

• Achieved lowest total recordable case rate since IPO and set new records in safety and operational performance.

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

• 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 gas plant, and Jafurah Phase 1.

Financial highlights

• Adjusted net income reached $105 billion, with ROACE around 20%, more resilient than peers.

• Operating cash flow was $136.2 billion, up from 2024, and free cash flow stood at $85.4 billion.

• Downstream EBIT increased more than fourfold year-over-year, driven by improved refining margins and transformation initiatives.

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

• Announced a 3.5% increase in Q4 base dividend to $22 billion and a $2-$3 billion share buyback program.

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.

• Incremental operating cash flow targets: $10-11bn per 1mmbpd crude capacity, $12-15bn from gas growth, $8-10bn from 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.