Saudi Aramco’s net profit hits $27.27bn in Q1/node/2506051/business-economy
Saudi Aramco’s net profit hits $27.27bn in Q1
The state-owned oil firm’s total revenue for the first quarter stood at $107.21 billion, with the total operating income for the period reaching $58.88 billion. Shutterstock
RIYADH: Energy giant Saudi Aramco reported a net profit of $27.27 billion in the first three months of this year, marking a 2.04 percent increase compared to the previous quarter.
According to the company’s statement, the state-owned oil firm’s total revenue for the the three months to the end of March stood at $107.21 billion, with the total operating income for the period reaching $58.88 billion.
Amin Nasser, president and CEO of Saudi Aramco, said: “Our first quarter performance reflects the resilience and strength of Aramco, reinforcing our position as a leading supplier of energy to economies, to industries and to people worldwide.”
However, when compared with the first quarter of the previous year, the net profit of the Tadawul-listed firm declined by 14.44 percent by the end of March 2024.
Despite lower net income, Aramco declared a base dividend of $20.3 billion for the first three months of the year and anticipates distributing its fourth performance-linked dividend of $10.8 billion in the second quarter.
The statement added that the company expects total dividends of $124.3 billion to be declared in 2024, comprising a base dividend of $81.2 billion and a performance-linked dividend of $43.1 billion.
Nasser revealed that Saudi Aramco made significant progress in its gas business during the first quarter.
“We also continue to execute our long-term strategy, and in the first quarter made significant progress on expanding our gas business and growing our globally-integrated downstream value chain, while maintaining our focus on consistently delivering value for our shareholder,” he added.
In February, the energy giant discovered an additional 15 trillion standard cubic feet of gas and 2 billion barrels of condensate in the Kingdom’s Jafurah Field.
Additionally, the statement noted that Saudi Aramco awarded $7.7 billion worth of engineering, procurement, and construction contracts for the expansion of the Fadhili Gas Plant, aiming to increase its processing capacity by 1.5 billion standard cubic feet per day.
Moreover, Aramco completed the acquisition of a 100 percent equity stake in Chilean retailer Esmax in the third quarter of 2023, bolstering the company's downstream expansion efforts.
“Looking ahead, I expect our portfolio to continue to evolve as we aim to contribute to an energy transition that offers solutions to climate challenges, but at the same time recognizes the need for affordable, reliable, and flexible energy supplies,” added Nasser.
The statement further added that Saudi Aramco is well-positioned to help meet the world’s growing need for affordable and reliable energy, emphasizing that oil and gas will continue to play a significant role in the global energy mix.
Additionally, the company noted that it achieved a total hydrocarbon production of 12.4 million barrels of oil equivalent in the first quarter of this year.
Highlighting Aramco’s commitment to sustainability, the energy giant announced its intention to ramp up its utilization of renewable energy sources, aiming to invest in up to 12 gigawatts of solar photovoltaic and wind projects by 2030.
In January, the Sudair Solar PV Plant, one of the largest solar installations in the region boasting a capacity of 1.5 GW, achieved full-capacity operation. This project is a joint venture between Aramco, Saudi Arabia’s sovereign wealth fund, and utility developer ACWA Power.
Rocco Forte Hotels eyes strategic locations for expansion in Saudi Arabia
Updated 12 February 2025
Reina Takla Nour El-Shaeri
RIYADH: Rocco Forte Hotels is considering expansion into Saudi Arabia, eyeing potential locations along the Red Sea and in Riyadh, according to the company’s executive chairman.
In an interview with Arab News on the sidelines of the third PIF Private Sector Forum in Riyadh on Wednesday, Rocco Forte, who is also the company’s founder, confirmed that while details of the Red Sea project are still under wraps, the firm is actively evaluating opportunities in the Kingdom.
“Obviously, with PIF (Public Investment Fund) investing in us, we completed the deal last January and we’re starting to become active and looking seriously at things here (in Saudi Arabia),” Forte said.
Forte highlighted the company’s partnership with PIF, which began in 2023 and involved the acquisition of a 49 percent stake by the Saudi fund.
The luxury hotel group, renowned for its properties typically ranging from 80 to 120 rooms, is targeting strategic locations in the Kingdom that align with its brand values.
“For example, Diriyah would be an ideal place for us, and then one or two other areas in Riyadh,” Forte said. While the company’s current projects in Saudi Arabia are tied to PIF, he expressed openness to collaborating with private local investors in the future.
“We haven’t been here long enough to start talking to a lot of private investors, but it’s obviously something we’d like to do and explore the possibilities there,” he stated.
Forte emphasized that the investment from PIF has significantly raised the company’s global profile and strengthened its financial position.
“PIF made a large investment in my company, and it was a very high-profile deal, it raised our visibility around the world in a way that wasn’t the case before,” he said.
He also praised PIF’s long-term investment approach, aligning with Rocco Forte Hotels’ family-owned business model.
“Many funds who invest in hotel companies and so on have a very short vision,” he said, “PIF is a different type of investor, and it very much coincides with my vision,” he added.
In addition to its plans in Saudi Arabia, Rocco Forte Hotels is broadening its global footprint, with five new hotels currently under development in Italy, including an upcoming property in Milan scheduled to open in November.
The company is also exploring growth opportunities in Spain, Greece, and the US, driven by robust demand from American travelers.
Forte also noted emerging trends in Saudi Arabia that are shaping the luxury hospitality sector, such as the growing popularity of multi-generational family travel and the increasing convergence of business and leisure trips.
“There’s a lot of business travel where people are either adding a few days at the beginning or end for leisure. That’s very prevalent now,” he observed, underlining that while business travel has not fully returned to pre-pandemic levels, new patterns are emerging.
Reflecting on Saudi Arabia’s tourism transformation, Forte described the scale of development as unprecedented.
“If you’re outside Saudi Arabia, you don’t realize what is going on here,” he said. “Nothing like this has ever been attempted anywhere in the world. They’re developing 20 different destinations, and there’s an energy and dynamism which I think has captivated all the people.”
Ceer supercharges Saudi EV industry with $1.4bn in deals, gearing up for 2026 launch
Updated 12 February 2025
Reina Takla Miguel Hadchity
RIYADH: Saudi Arabia’s first homegrown electric vehicle brand, Ceer, signed 11 deals worth SR5.5 billion ($1.4 billion) at a Public Investment Fund event ahead of its model launch in 2026
More than 80 percent of these agreements involve Saudi companies, reinforcing Ceer’s commitment to its 45 percent localization target and advancing the Kingdom’s Vision 2030’s economic diversification goals.
Among the key memorandums of understanding signed at the PIF Private Sector Forum are agreements related to heating and air conditioning, portable EV chargers and various manufacturing aspects, such as plastic injection parts.
In an interview with Arab News on the sidelines of the event, Jim DeLuca, CEO of the company, said: “At Ceer, we say we’re not just starting a car company. We are igniting the automotive industry,” he said.
DeLuca highlighted that Ceer is the only company in Saudi Arabia managing the entire process — from designing and engineering to manufacturing, selling, and servicing a portfolio of battery electric vehicles.
He highlighted the King Abdullah Economic City manufacturing plant, a cutting-edge facility capable of producing 38 jobs per hour with integrated shops for press, body paint, and general assembly. “You can’t have an automotive ecosystem without a local supply base, so we’ve attracted some of the best global tier-one suppliers, they too are joining us in KAEC, and so we’re developing this whole ecosystem.”
DeLuca outlined Ceer’s strategic supply chain approach, explaining how global tier-one suppliers produce key components and subassemblies that will be shipped into the plant on schedule.
“We’re talking about things like front-rear subframes, interiors, front-rear fascias, body components, but that’s only the beginning. Those tier ones need a tier-two supply base, and many of today’s announcements are tier-two suppliers who will provide smaller parts and components to the tier ones, who will then supply to us just in time,” he explained.
Ceer’s localization efforts ensure an efficient, cost-effective supply chain. “This is a capital-intensive, low-margin business, you need a laser-like focus on the strategic elimination of waste,” the top official said.
He added: “One of the ways you do that is by having your supply base right next to the plant. And because we’re in KAEC with Lucid and Hyundai, and hopefully one day others, that’s the type of volume these suppliers need to have a very positive business case.”
Ceer was announced in November 2022. File
Scaling up production and Saudi’s automotive future
Ceer’s business plan extends through 2034, with the KAEC plant set to ramp up production in phases. “In 2024, we started plant construction. In 2025, we will install process equipment — press, body paint, general assembly. Then, at the beginning of 2026, we start validation builds, moving from non-salable to salable.”
DeLuca revealed that by the last quarter of 2026, Ceer will be up and running, producing its first two aspirational vehicles for sale in Saudi Arabia.
The CEO also emphasized the importance of the King Salman Automotive Cluster, which serves as the industry umbrella for KAEC’s expanding automotive sector. Ceer has secured contracts with major tier-one suppliers, including Lear, Forvia, and Shinyoung, as well as Benteler, and JVIS, to localize key vehicle components.
“These are global tier-ones, and we already have contracts with them. They haven’t been formally announced yet, but we’re talking about front-rear subframes, interiors, exterior body components, and sheet metal components — all large, complicated, and expensive to ship, so co-locating with the assembly plants is the right strategy,” he added.
Advancing charging infrastructure and market adoption
Addressing adoption challenges facing the sector, DeLuca pointed to PIF’s EV infrastructure initiative, EVIQ, which is deploying charging stations across major Saudi cities.
“A lot of people have anxiety when considering a battery electric vehicle. What gives them comfort is a strong charging infrastructure. EVIQ is rolling out charging stations in Riyadh, Jeddah, Dammam, and beyond to ensure a seamless transition as we ramp up production,” he said.
Ceer plans to introduce seven vehicle models, spanning the E, D, and C segments, including sedans and SUVs, from 2026 to 2029.
Ceer’s growth strategy and future outlook
Ceer’s assembly complex is designed for an annual capacity of 240,000 units and is fully funded, according to the CEO.
“Our current business plan is fully funded through 2034 between our shareholders and other financial instruments. I think the vision of any company is eventually, potentially to have an IPO (initial public offering) where you can start to monetize all of the great work that has taken place, so I won’t say one day it’s not going to happen,” he added.
He acknowledged that global EV market adoption has been slower than anticipated, emphasizing that product quality, pricing, infrastructure, and incentives will drive Saudi Arabia’s transition. “The Ministry of Investment is working on ecosystem incentives to accelerate EV adoption. We see steady growth in the early days, but incentives will be key to making EVs the catalyst for Saudi Arabia’s automotive transformation.”
Ceer’s agreements and localization drive
According to a press release, agreements were signed at the event with Zamil Central Air Conditioners Co. for heating, ventilation, and air conditioning systems, Zamil Plastic Industrial Co. for plastic injection parts, Obeikan Glass Co. and Abdul Latif Jameel Enterprises for alloy wheels, and the Saudi Co. for Controls and Maintenance for portable EV chargers.
Additional deals include Arabian Plastic Industrial Co. for blow parts, Saudi Aluminum Casting Co. for aluminum casting, First Telecom Industries for small stampings, and CTR for localizing aluminum forged parts in Saudi Arabia.
Ceer has also partnered with 263 local companies, awarding businesses worth SR6.6 billion to firms such as Modern Building Leaders, Nahil Computer, and Bupa Arabia, as well as Atlas Industrial Equipment Co., Saudi Business Machines, and Liva Insurance.
Speaking at the forum, DeLuca underscored Ceer’s role in realizing Vision 2030’s industrial and economic diversification goals. “Over the next decade, we will attract more than $150 million in foreign direct investment, create up to 30,000 direct and indirect jobs, localize 45 percent of our product content or built material and contribute $8 billion directly to Saudi’s GDP by 2034,” he said.
The company’s manufacturing complex, a $1.3 billion facility spanning 1 million sq. meters in King Abdullah Economic City, is poised to become the largest and most technologically advanced automotive production hub in the Middle East and North Africa region.
As part of its expansion strategy, the automotive company is set to welcome six major partners to KAEC, collectively contributing over SR50 billion in value.
DeLuca highlighted Ceer’s commitment to localizing its supply chain, with 45 percent of its product content and built materials to be sourced within the Kingdom.
The company’s workforce has already grown to over 1,300 employees, according to the top official, with a team of global experts bringing extensive experience to drive innovation and competitiveness.
DeLuca emphasized that strategic collaborations with leading automotive players such as Hyundai and Rimac are ensuring Ceer’s electric vehicles are technologically advanced and globally competitive.
One of Ceer’s standout features will be its industry-leading paint shop, offering an extensive color palette with over 30 shades in gloss, matte, and satin finishes, setting a new benchmark in vehicle customization.
“We’re here today at this forum as a testament to the power of collaboration and to highlight the vital role that the private sector plays in achieving all elements of Vision 2030,” DeLuca said.
OPEC sticks to 2025, 2026 global oil demand growth forecasts
Updated 12 February 2025
Reuters
LONDON: OPEC on Wednesday stuck to its forecast for relatively strong growth in global oil demand in 2025, saying air and road travel would support consumption and potential trade tariffs were not expected to impact economic growth.
In a monthly report, it said world oil demand will rise by 1.45 million barrels per day in 2025 and by 1.43 million bpd in 2026. Both forecasts were unchanged from last month.
OPEC’s view on oil demand is at the higher end of industry forecasts and it expects oil use to keep rising in coming years, unlike the International Energy Agency which see demand peaking this decade as the world switches to cleaner fuels.
In the report, OPEC said the trade policy of US President Donald Trump has added more uncertainty into markets, potentially creating supply-demand imbalances that are not reflective of market fundamentals, but it made no change to its 2025 economic growth forecast.
“It remains to be seen how and to what extent potential tariffs and other policy measures will play out,” OPEC said in the report. “So far, they are not anticipated to materially impact the current underlying growth assumptions.”
Oil was steady after the OPEC report was released with Brent crude trading lower towards $76 a barrel.
The IEA sees 2025 demand growth at 1.05 million bpd, lower than OPEC, although the gap between the two on 2025 is much smaller than it was for 2024 when the split reached a record high driven by differences over the pace of the energy transition.
OPEC+, which groups OPEC and allies such as Russia, has implemented a series of output cuts since late 2022 to support the market. Its current plan calls for oil output to be gradually increased from April.
Ma’aden to test data from Aramco warehouses to inform new mines plan
Updated 12 February 2025
REEM WALID
RIYADH: The Saudi Arabian Mining Co., or Ma’aden, will analyze terabytes of data from Aramco’s warehouses as part of its efforts to build two mines, its CEO revealed.
In a discussion titled “Ma’aden: Saudi Arabia’s Mining Industry Pioneer” on the first day of the Public Investment Fund Private Sector Forum, taking place from Feb. 12-13 in Riyadh, Robert Wilt explained that the company intends to test the core samples using artificial intelligence as part of its 2025 key performance indicators.
This falls in line with the Kingdom’s goal to increase the mining industry’s gross domestic product contribution from $17 billion to $75 billion by 2035.
It also aligns well with Saudi Arabia’s efforts to establish mining as the third pillar of the nation’s industrial economy.
“We are in the process of finalizing the joint venture with Aramco to partner together to explore all of the Arabian platform. Our efforts to date have been focused on the Arabian Shield. Aramco has been exploring the platform for oil and gas now for 80 some years. They’ve got, I can’t tell you how many terabytes of data and core samples in warehouses as big as this hall that have not been tested for minerals,” Wilt said.
“Another one of our KPIs this year is to find two mines by mining that data using artificial intelligence. So, we’re throwing technology, AI, digitization, and innovation across everything from exploration all the way through processing to reduce costs, make it more sustainable, and most of all for us is acceleration,” he added.
During the talk, the CEO also shed light on the fact that Ma’aden is utilizing 72 percent of its exploration budget this year on copper.
This comes as the company has not “really spent as much time looking for the energy transition metals and some of the other minerals that we know are here,” Wilt said.
He added: “Just this year, we’ve announced two or three major gold discoveries and we’re on the precipice of announcing two copper discoveries. So, I can tell you the minerals are here and it’s just up to us to get them out of the ground, to extract them sustainably, safely, responsibly.”
The CEO also emphasized that the firm is only 10 to 15 years old and that it is already the third-largest exporter of phosphate fertilizers.
“We’re the fastest growing mining company in the world for the last five years and we’re the eighth-most valuable mining company in the world by market capitalization. So, a meteoric rise over the last decade and a half,” Wilt said.
He added: “We need to make this thing 10 times bigger by 2040. So, the aspiration is to not be one of the most valuable mining companies in the world — has to be the most valuable mining company in the world. It is to feed more than 10 percent of the world’s population; it is to provide the metals and minerals required for the downstream diversification across the Kingdom, whether it’s aluminum, copper, lithium, zinc.”
The CEO noted that the company estimates that there are $2.5 trillion worth of reserves buried in the sands of Saudi Arabia.
“If you look at the $2.5 trillion, 45 percent of its phosphate, and we know where that is. We’re already mining it; we’re already producing it. It’s the biggest part of our business,” Wilt said.
“But then some of the exotic minerals like rare earth elements, you know, we’re close to being able to talk about that publicly. There’s a lot of interest in the Kingdom for some from some near-stage discoveries where we’re making there, so I would say probably 60 percent has been actively explored, and then the 40 percent we’ve got to accelerate through to the pipeline,” he added.
The forum, which will unite more than 90 PIF-backed companies, seeks to strengthen supply chains, boost local manufacturing, and accelerate economic diversification under Vision 2030.
Now in its third year, the event will spotlight business opportunities with the sovereign wealth fund and its portfolio companies, identify potential prospects for investors and suppliers, and expand avenues for collaboration. It will also serve as a bridge between PIF, its portfolio companies, and the private sector, reinforcing localization efforts.
Saudi PIF announces 30% acquisition in Masdar, $1.5bn SEDRA deals
Updated 12 February 2025
MOHAMMED AL-KINANI
JEDDAH: The Saudi sovereign wealth fund has unveiled major investments, including a 30 percent stake in Masdar Building Materials Co. and a $1.5 billion ($400.5) contract to develop the Riyadh Sedra community.
The announcements were made during the Public Investment Fund’s Private Sector Forum, held from Feb.12-13 in the Saudi capital.
The partial acquisition aligns with the Kingdom’s efforts to increase private sector participation in its economic diversification initiatives, with the wealth fund playing a central role in this transformation to achieve the goals of Saudi Vision 2030. The construction, building components, and services sector is a priority due to its crucial economic contribution.
In a statement, PIF said the move aims to strengthen Saudi Arabia’s leading position in the sector to meet current and future demand.
PIF seeks to reinforce local supply chains, prioritize strategic products and services, and localize advanced technologies and expertise.
Ahmad Al-Ghamdi, head of construction and building materials, MENA Investments at PIF, stated that the investment in Masdar will strengthen local supply chains by enhancing capabilities in the construction, building components, and services sector, which is one of PIF’s strategic focus areas.
“The investment will also support the development of the building materials distribution network, increase access to value-added services, and accelerate digital transformation through the adoption of the latest technologies and solutions.” Al-Ghamdi said.
He added that the financial backing also represents another step toward promoting partnerships with the private sector to develop strategic industries and increase the Kingdom’s gross domestic product.
Faisal Al-Muhaidib, Masdar CEO, said: “As a leading building and construction materials company in Saudi Arabia, we look forward to partnering with PIF to play a vital role in supporting the growth and development of the sector by scaling up our capabilities and meeting current and upcoming demand.”
The CEO added that the construction, building components and services sector is one of the most vital and promising in the Kingdom. PIF’s investment will accelerate his company’s growth, enabling it to expand its capabilities and strengthen its leading position by offering products through its distribution network.
PIF said that the acquisition of the local company specializing in the trading and distribution of building materials is through a capital increase by subscribing to newly issued shares, according to its statement released on Feb. 12.
The wealth fund added that the investment will enable Masdar to transform its operations through digital technology, improving customer experience and operational efficiency. Additionally, it will help Masdar expand its operations, build new strategic partnerships, and increase the role of local suppliers and businesses in the building materials market.
PIF-Backed ROSHN secures $400M in development contracts
During the forum, Saudi Arabia’s giant property developer and PIF company ROSHN signed contracts worth SR1.5 billion to develop the SEDRA integrated residential community in the capital city.
These include an SR650 million contract with SARH ATTQNIA Co. to develop 968 housing units and an SR720 million deal with the Chinese construction company HCE to build luxury units within the eight-phase SEDRA project, which was announced in 2021.
The project spans 20 million sq. meters and is plans to provide over 30,000 private homes as part of the Kingdom’s broader urban development and housing initiatives.
In August, ROSHN opened sales for 1,251 new homes as part of the fourth phase of the project, which expands the flagship development by 1.8 million sq. meters, featuring homes near the natural wadi integrated into the SEDRA masterplan, following high demand and sales for homes in the community, according to the company.
In October 2023, the property developer launched the sales for the third phase of the project, introducing 3,438 new residences and a wide range of amenities.
The initiative is known for its modern residential communities and integrated amenities, contributing to the Kingdom’s Vision 2030 goals of enhancing urban living and promoting sustainable living.
