Aramco debt level ‘very low’; 3M bpd surplus capacity: Exec

Saudi Arabian Oil Co.’s (Saudi Aramco) debt level at 5.3% is the lowest among the five major global oil firms, Ziad Al-Murshed, Executive Vice President and CFO, told Al-Ekhbariya TV.

The low debt level further strengthens Aramco’s financial flexibility, boosts its ability to execute its capital program, and expands opportunities to generate returns for investors, he added.

Al-Murshed noted that operating cash flows were strong in the first quarter, reaching SAR 119 billion, while free cash flow amounted to about SAR 71 billion.

Global oil markets are experiencing high levels of volatility and uncertainty. However, most analyst forecasts still indicate that oil demand will grow this year at the same levels seen over the past four years, particularly since the COVID-19 pandemic.

Al-Murshed expects oil demand to exceed the historic levels reached in 2024.

He added that the company has surplus production capacity of up to three million barrels per day (bpd), which can be activated at relatively low cost, pointing out that every additional million bpd has the potential to increase net income by SAR 43 billion annually, based on average prices in the first quarter.

The company’s capital spending is disciplined and it targets high-return areas in oil, gas, and other sectors. Aramco's projects aimed to increase gas production capacity by more than 60% by 2030 compared to 2021 levels. They are expected to add between SAR 35 billion and SAR 38 billion in annual operating cash flow by 2030, according to Al-Murshed.

Regarding the progress of oil and gas projects in the first quarter, especially amid expectations for the Jafurah field to become operational later this year, Al-Murshed said the company expects to complete capacity expansion projects at the Marjan and Barri fields, as well as Phase 1 of the Dammam field, later this year.

“Phase 1 production from the Jafurah field is expected to begin in the coming months. Aramco is also working to complete the construction and commissioning of Ras Tanajib plant this year,” he added.

These projects represent a real opportunity to enhance the financial performance of the downstream segment, with the goal of maximizing investor returns through higher future performance-based distributions, he noted.

According to data available with Argaam, Aramco’s profits fell to SAR 97.54 billion (before minority interests) by the end of Q1 2025, compared to SAR 102.27 billion in the same period a year earlier.