Aramco Stock Price: Comprehensive Analysis and Developments

Saudi Aramco is considered one of the largest integrated oil and gas companies in the world, leading in crude oil production, refining, and marketing. Founded in 1933, the company evolved from an American-Saudi partnership to a fully Saudi entity and was listed on the Saudi stock market at the end of 2019, with its stock symbol in Tadawul being 2222. Since then, Aramco has become a key player in the Saudi financial market, representing a significant portion of the relative weight in major indices. The company effectively contributes to the national economy by providing substantial revenues to the state treasury, achieving a trade surplus, and supporting development programs under Vision 2030. Aramco's ability to adapt to global market changes and diversify its activities between exploration, production, refining, and chemicals enhances its resilience and makes it an indispensable global player in the energy sector. Monitoring the price of Aramco shares remains a key indicator of the health of the Saudi energy sector and overall economic performance.

The price of Aramco shares during 2024 and 2025 witnessed notable movements, ranging between 24 and 30 Saudi Riyals for most periods. This volatility reflects the continuous changes in global oil prices, the impact of OPEC+ production decisions, as well as economic and geopolitical challenges. At the beginning of 2024, the stock recorded high levels supported by strong earnings and exceptional distributions; however, a decline in oil prices in the second half of the year led to a relative decrease in the stock price. By mid-2025, the stock stabilized around an average of 25 Saudi Riyals. The price of Aramco shares is a sensitive indicator of financial news, reacting to quarterly results announcements, dividend distributions, and any developments related to the oil sector. It is important to note that the stock price cannot be accurately predicted in the future, as it is determined by supply and demand factors and general economic conditions.

Several factors directly or indirectly affect the price of Aramco shares in the Saudi market. The most prominent of these factors is the global oil price (Brent, West Texas), where rising prices lead to increased revenues and profits for the company, positively reflecting on the stock, and vice versa. OPEC+ decisions regarding production levels also play a vital role in determining price directions. Additionally, the stock is influenced by the company's quarterly and annual financial results, as achieving profits that exceed expectations or announcing generous cash distributions often supports the stock's performance. The impact of government policies, especially those related to Saudi Vision 2030 and the shift towards economic diversification, cannot be overlooked. Finally, global economic conditions, such as growth rates, energy demand, and geopolitical developments, significantly influence stock movements.

The financial indicators for Saudi Aramco in 2024-2025 reflect the company's strength and ability to withstand market challenges. The company recorded a 13.6% decline in net profits in the first half of 2025 compared to the first half of 2024 (182.57 billion Riyals versus 211.28 billion Riyals). Quarterly revenues fell to 378.83 billion Riyals in the second quarter of 2025. Earnings per share during the first half of 2025 were approximately 0.75 Riyals. The price-to-earnings ratio (P/E) ranged between 15 and 20, a level that reflects market confidence in Aramco's ability to generate profits, despite oil pressures. Aramco remains one of the most generous dividend distributors in the Saudi market, making it particularly attractive to investors seeking regular income. The company maintains a stable cash distribution policy, with the possibility of adding performance-linked distributions during strong periods.

One of the most notable advantages of investing in Aramco stock is its generous cash distributions. The company announced a dividend of 0.48 Riyals per share in the first quarter of 2024 (of which 0.3145 Riyals is basic and 0.1670 Riyals is performance-linked), and 0.3312 Riyals per share in the second quarter of 2025. Aramco follows an annual distribution policy of no less than 0.23 Riyals per quarter, with flexibility to add additional distributions when exceptional results are achieved. This approach has made Aramco stock one of the most attractive Saudi stocks for investors seeking stable cash returns. It is noted that distributions are subject to the approval of the general assembly and may change based on the company's results and board of directors' directions. Monitoring the profit policy and its distributions remains a fundamental factor in evaluating Aramco's stock.

Aramco's stock falls within the energy sector, which is considered a strategic sector not only in the Kingdom of Saudi Arabia but globally. Aramco dominates this sector locally due to its massive production capabilities and investments in refining and chemicals, and it holds a leading position globally compared to oil giants such as ExxonMobil, Shell, and BP. The results of companies in this sector depend on variables such as oil prices, global demand, OPEC policies, and shifts in energy sources. Aramco plays a pivotal role in supporting the national economy, as it constitutes the main source of income for the state, provides job opportunities, and finances strategic projects under Vision 2030. The company is also committed to developing clean energy projects and sustainable transformation, which gives it flexibility in facing future challenges.

Despite Aramco's massive size, there are no direct local competitors that match it in the Saudi market; the closest companies like SABIC or Hail Cement (symbol: 3001) operate in different sectors and do not reach Aramco's level in terms of production or market value. Globally, Aramco competes with major oil companies such as ExxonMobil, Shell, BP, and TotalEnergies, but the support of the Saudi government and the company's refining and distribution capabilities give it a competitive edge. Regionally, companies like the UAE's ADNOC or Kuwait Petroleum Corporation are smaller and less influential in the market. This reflects that Aramco remains a unique player in the energy sector, with a significant impact on investment trends in the Saudi financial market.

The correlation between Aramco's stock price and global oil prices is one of the strongest links in the Saudi financial market. An increase in the price of a barrel of oil leads to increased profits for the company, which often reflects in a rise in the stock price. Conversely, a decline in oil prices results in reduced revenues and profits, putting pressure on the stock. This effect is observed with every announcement of OPEC+ decisions or the release of global inventory data. Geopolitical changes, global crises, and trade wars also affect oil price fluctuations and, consequently, Aramco's stock performance. Therefore, investors are advised to follow global oil news and Aramco's quarterly reports to better understand the stock's dynamics.

Aramco experienced several important developments during 2024 and 2025 that affected the stock price. Among these developments were record profits at the beginning of 2024 and exceptional distributions, followed by a slowdown in growth and declining profits in the second half of 2024 and 2025 due to falling oil prices. The company also announced local and global expansion projects, such as developing new oil fields and investing in clean energy. On the government policy front, the Public Investment Fund continued to manage a significant stake in the company's shares, with potential future changes in ownership structure. The stock was one of the most traded in the market, with high liquidity and attractiveness to institutional and individual investors. These events underscore the importance of monitoring ongoing developments regarding the company and its financial performance.

The price of Aramco shares is a central element in the performance of the main indices of the Saudi financial market (Tadawul). The company contributes more than 10% of the weight of the general market index, making any change in the stock price have a wide impact on the overall market capitalization. Additionally, the high liquidity of the stock makes it a fundamental component in investment portfolios and local and global sovereign funds. Aramco is also a key pillar in financing Vision projects, as the state directs part of the IPO proceeds to economic and developmental projects. The stock's performance affects the confidence of local and foreign investors in the Saudi market, giving Aramco a special status in the national economy.

Although both Aramco and Hail Cement (symbol: 3001) are listed on the Saudi stock market, their operational fields and financial performance differ entirely. Hail Cement operates in the cement and heavy industrial goods sector, and its performance depends on construction indicators and local demand for building materials. In contrast, Aramco dominates the oil and gas sector, and its performance is linked to global oil prices and production volume. In terms of market capitalization, Aramco vastly outperforms Hail Cement, enjoying much greater liquidity and trading volume. Hail Cement serves a specific segment of the local market and achieves its growth based on infrastructure and real estate projects. This difference highlights the importance of understanding the nature of each company before making any investment decision.

Saudi Vision 2030 serves as a strategic framework to guide the Kingdom's economy towards diversification and sustainability, with Aramco playing a pivotal role in achieving its goals. The vision focuses on reducing dependence on oil as the sole source of income and encouraging investment in new sectors such as renewable energy, manufacturing industries, and modern technologies. Aramco supports these trends by injecting substantial investments into clean energy projects, developing hydrogen, and expanding into global markets. The company also contributes to financing many government initiatives and major national projects. Aramco is expected to continue updating its strategy in line with the objectives of Vision 2030, enhancing its resilience and ability to face future changes.

The price-to-earnings ratio (P/E) is one of the most important indicators used to evaluate Aramco's stock price. The ratio is calculated by dividing the stock price by the annual earnings per share. Amid the decline in the company's profits during 2024-2025, the P/E ratio rose to a range between 15 and 20, reflecting a moderate profit environment despite substantial revenues. This ratio remains attractive within the energy sector, especially as the company continues to distribute generous dividends. It is important for investors to understand that the P/E ratio may change periodically based on the company's results and future growth expectations. It is recommended to compare this indicator with similar companies in the same sector to better understand the stock's attractiveness.

Saudi Aramco is characterized by a strong governance structure that ensures the company's stability and its continued achievement of strategic goals. The Saudi government (through the Public Investment Fund) holds the largest share of the company's stock, providing strong institutional support. The board of directors consists of a group of local and international competencies, with the company committed to the highest standards of transparency and financial disclosure. This organizational stability positively impacts investor confidence and reduces risks associated with administrative or policy fluctuations. The company is also committed to clear policies regarding profit distribution, risk management, and environmental and social sustainability standards. This system is one of the strengths that distinguish Aramco from many other companies listed in the market.