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Aramco Posts $104.7 Billion Profit, Beats Q4, Keeps Payouts as Strait of Hormuz Closure Clouds Exports

Investor focus has shifted to Aramco’s capacity to maintain exports through alternatives to the Strait of Hormuz.

Overview

  • Full-year adjusted net income totaled $104.7 billion on roughly $445 billion of revenue, both down from 2024 levels.
  • Fourth-quarter adjusted profit reached $25.1 billion, topping estimates, alongside a $21.89 billion base dividend for Q4 and a share buyback of up to $3 billion over 18 months.
  • Aramco reported $136.2 billion in operating cash flow, $85.4 billion in free cash flow, and $52.2 billion in capital investments for 2025.
  • Reports of Iranian attacks and an effective closure of the Strait of Hormuz threaten near-term export capacity even as crude prices recently approached $120 per barrel.
  • JPMorgan and Goldman Sachs warned that higher prices may be offset by lower realized output, with Iraq, Kuwait, and the UAE already curtailing production due to export constraints.