Aramco Stock: Detailed Evaluation of Performance and Financial Indicators

Saudi Aramco was established in 1933, and the Saudi government fully acquired it over the following decades. Aramco is the heartbeat of the Saudi energy sector, responsible for producing the majority of crude oil in the Kingdom. With the public offering of 1.5% of its shares in December 2019, Aramco's stock (symbol on Tadawul: 2222) entered a new phase, raising the largest IPO in history and achieving a strong presence in the Saudi market index (TASI). The Saudi government owns the majority of shares (about 98.5%), while the remaining percentage is traded in the market. Aramco's stock carries significant weight in the overall index and indicates the performance of the local and global energy sector. The listing of the stock is a pivotal step within the Kingdom's Vision 2030 to diversify the economy and attract investments. The stock's significant position in Tadawul makes it a primary reference for tracking the movement of the Saudi market and its response to energy prices and economic developments.

Saudi Aramco demonstrated strong performance in its financial results for 2024, with a net income of 398.4 billion Saudi Riyals, despite a decrease of approximately 12.6% from the previous year due to falling oil prices. Operating cash flows reached 508.9 billion Riyals, while free cash flows amounted to 320 billion Riyals. The debt ratio is very low (4.5% at the end of 2024), reflecting a strong financial position. Regarding dividends, Aramco announced quarterly distributions of 0.3278 Riyals per share for each quarter of 2024, equating to 1.31 Riyals annually per share, with performance-related increases based on the company's results. Aramco plans to maintain high distributions in 2025, with a total expected of 320.4 billion Riyals. These figures enhance investor confidence in the company's sustainability and its ability to face global challenges. In terms of capital expenditures, the company invested 199.9 billion Riyals in 2024 to support business expansion and ensure continued high productivity.

Aramco's stock trades under the symbol 2222 in the Saudi financial market. Since its listing, the stock has experienced significant fluctuations linked to global oil prices and major economic events. The stock peaked at 39.41 Riyals in June 2022, while it fell below 22 Riyals during the oil market crisis in 2020. In 2024 and 2025, the stock price has often ranged between the mid-twenties and early thirties Riyals, supported by strong dividends and expectations of a recovery in global energy demand. It is important to note that stock prices change continuously during trading sessions, and it is always advisable to refer to real-time market data from Tadawul or licensed trading platforms for accurate current prices. Movements in Aramco's stock generally reflect trends in oil prices and macroeconomic forecasts, making it an important indicator of the vitality of the Saudi financial market.

Aramco is classified as the largest listed company in the Middle East by market capitalization and often ranks among the largest companies globally. As of the end of 2024, with over 241.7 billion shares and a price ranging between 25 and 30 Riyals, the market capitalization exceeds 1.5 trillion US dollars (approximately 9 to 11 trillion Saudi Riyals). This value confirms Aramco's global dominance among oil companies. The price-to-earnings (P/E) ratio is calculated by dividing the stock price by the annual earnings per share. With an annual earnings per share of approximately 1.65 Riyals and a price between 25 and 30 Riyals, the P/E ratio ranges between 15 and 18 times, which is considered moderate or low compared to global oil companies, especially with stable dividends and financial solvency. This ratio indicates the stock's attractiveness as one of the major options in the Saudi financial market in terms of stability and periodic returns.

Aramco is characterized by a regular and substantial dividend policy, distributing quarterly dividends to shareholders. In 2024, the basic quarterly distribution reached 0.3278 Riyals per share, bringing the total annual basic distribution to 1.31 Riyals, with the possibility of adding performance-related distributions in certain periods when additional profits are achieved. The total distributions in 2024 exceeded 320 billion Saudi Riyals. Dividends are paid to shareholders registered on the record date through the financial market. The annual dividend yield ranges between 4% and 5% depending on the stock price in the market, which is among the highest rates in the Saudi and global financial markets. This regular distribution policy reflects the company's commitment to attracting investors and providing them with a continuous income, making it one of the main reasons for the stock's appeal to income-seeking investors.

Aramco's stock belongs to the energy, oil, and gas sector, which is the most important sector in the Saudi economy and one of the main drivers of the global economy. Aramco manages integrated operations including exploration, production, refining, and petrochemicals, with a very low oil production cost (around 2–3 dollars per barrel), giving it a clear competitive advantage. In recent years, the sector has seen a recovery in global oil demand, with expectations of continued growth in 2025. Aramco maintains spare production capacity that ensures flexibility in responding to any sudden market changes. In addition to oil, the company focuses on natural gas projects and expanding petrochemical products, enhancing its ability to diversify income sources and reduce price volatility risks. Investments in infrastructure, new technologies, and strategic partnerships with global companies are all elements that strengthen Aramco's position both locally and globally.

Aramco is the dominant company in the oil sector in the Kingdom of Saudi Arabia and has no direct local competitor in exploration and production. In the refining and petrochemical sector, it has partnerships with companies like SABIC (in which Aramco holds the largest stake), SAMREF, and SATORP. Globally, Aramco competes with major oil companies such as ExxonMobil, Royal Dutch Shell, TotalEnergies, and BP. Aramco enjoys advantages of scale, efficiency, and low production costs, giving it greater flexibility compared to competitors. The company is also continuously developing modern technologies in production and petrochemicals and expanding its international partnerships to remain at the forefront of global energy companies.

Recently, Aramco has witnessed several important developments. In January 2026, the company launched a high-octane gasoline product (98) named "Hayat 98," targeting the sports vehicle sector. Additionally, in December 2025, it signed a memorandum of understanding with ExxonMobil to develop a new petrochemical complex in Yanbu. The company continues to announce strong quarterly financial results and high dividend distributions. Regarding future strategies, Aramco focuses on natural gas projects, hydrogen, and renewable energy, with ongoing investments in infrastructure and modern technologies. These developments affirm the company's resilience and ability to innovate and keep pace with global transformations in the energy sector, reflecting its commitment to supporting the national economy and implementing Vision 2030.

Aramco adopts a strategic vision aimed at maintaining its leadership in the energy sector with a focus on sustainability and innovation. The company invests heavily in natural gas projects, developing renewable energy solutions, and emission reduction technologies, such as green hydrogen and low-carbon ammonia. It also seeks to deepen integration between oil and chemicals through joint projects with major companies (such as TotalEnergies and SABIC). These investments aim to increase operating cash flows and diversify income sources away from crude oil. Aramco also focuses on developing competencies and digital technologies, including artificial intelligence and data analytics to improve operational efficiency. The company's commitment to achieving sustainable profits and growing dividends reflects its confidence in the continued demand for both traditional energy products and new solutions.

Despite its financial strength and global leadership, investing in Aramco stock is associated with several risks and influencing factors. The most prominent of these risks are fluctuations in global oil prices, which directly affect the company's profits and stock value. Additionally, the stock is influenced by global policies related to clean energy, shifts towards renewable energy sources, and any changes in regulations or international agreements regarding carbon emissions. Geopolitical tensions in the region can also impact Aramco's operations. On the operational side, the company remains exposed to risks related to infrastructure and supplies. It is important to note that the free float of the stock is relatively low due to the government holding the majority of shares, which may affect the stock's liquidity at certain times. It is crucial to carefully study these factors and consult a financial specialist before making any investment decisions.

Individual investors inside and outside the Kingdom of Saudi Arabia can purchase Aramco stock through the Saudi financial market (Tadawul). This requires opening a trading account with a licensed bank or brokerage firm. After opening the account and providing the necessary documents, investors can place buy and sell orders during official trading sessions. For foreign investors, the market offers special investment programs such as the Qualified Foreign Investor (QFI) program and exchange-traded funds. It is important to follow official disclosures and dividend entitlement dates and ensure compliance with the guidelines of the Capital Market Authority. It is always advisable to rely on licensed brokers and review fees and terms before executing any trading operations.

Aramco stock is a key indicator of the performance of the Saudi and global energy sector. Due to the company's significant weight in the Saudi market index, movements in Aramco's stock directly affect the overall index (TASI) and the indicators of sectors related to energy and basic materials. It is also viewed as a measure of the vitality of the Saudi economy, especially as the state's revenues are closely linked to Aramco's profits. Globally, Aramco's stock serves as a benchmark for comparing the performance of major oil companies, and investors benefit from tracking its developments to understand market trends. With regular dividends and a strong financial position, Aramco's stock remains of interest to investors seeking stability and periodic returns, while being mindful of the risks associated with fluctuations in energy prices.

Aramco's stock has shown relative resilience in the face of global market crises, such as the COVID-19 crisis and the collapse of oil prices in 2020, where the stock declined but remained better off than many global oil companies due to low production costs and government control. The company's continued distribution of quarterly dividends even in the toughest circumstances has bolstered investor confidence. When compared to other global companies, it is evident that Aramco benefits from its conservative financial policies, massive cash reserves, and government support. However, the stock is not immune to the impact of major economic events or shifts in energy demand. Therefore, it is important to monitor global economic news, OPEC policies, and the company's quarterly reports to understand stock developments and assess risks objectively.