Report Says Saudi Aramco Plans New Sukuk Sale After Profit Drop in First Quarter
Saudi Aramco has shared a new plan for a possible Islamic bond (called sukuk). This shows they might borrow money again soon after raising $5 billion with regular bonds earlier this week.
Sukuk Plan
On May 30, Aramco filed papers with the London Stock Exchange to sell sukuk (Islamic bonds). They have one year to issue these bonds. This decision comes after a time of unstable economy and more oil supply, which caused oil prices to drop and hurt the company’s profits.
Earlier this month, Reuters said Aramco plans to cut its dividend payments by almost one-third and might sell some assets to get money because oil prices and profits are falling. Oil prices are around $60, which is less than Saudi Arabia’s $90 break-even price. This puts pressure on Aramco as it tries to grow worldwide and make $90 billion in deals in the US.
First-Quarter Results
Aramco, mostly owned by Saudi Arabia’s government, reported a small revenue increase to $108.1 billion for the first three months of 2025. This is just a little higher than last year’s $107.2 billion. The increase was mainly because they sold more gas and chemical products, but the average prices were lower.
However, Aramco’s net profit fell by 4.6% to $25.9 billion from January to March compared to last year. This was due to lower prices, less income from other sales (which went down from $9.6 billion to $6.4 billion), and higher operating costs. Some of the loss was balanced by paying lower taxes.
Total revenue and related income dropped to $114.5 billion. But the company’s operational losses got smaller by 5.3%, down to $51 billion.
CEO Amin Nasser said the economy is uncertain and energy markets are unstable. Still, the company is making progress in areas like gas, petrochemicals, blue hydrogen, and carbon capture. The board agreed to pay base dividends for the first quarter and an extra payment linked to 2024’s full-year results. This totals $21.4 billion in dividends.
Published: 31th May 2025
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