12-05-2025
Saudi Aramco Q1 in line with expectaions
Citi Research said that Saudi oil giant Aramco's Q1 2025 net profit of 97.54 billion riyals ($26.01 billion) posted on Sunday showed that 'the QoQ improvement in price realisations as Aramco sales have moved to a premium to Brent pricing. Cash conversion is similar to last quarter.'
Analyst Alastair R Syme said that the 'adjusted net income of $25.5 billion in-line with market expectations and noting that consensus had already revised higher c. 10% in recent weeks'.
He said that Aramco's view that Q1 oil demand grew +1.7 million barrels per day (mbpd) 'is the highest estimate we have seen. The question, as it pertains to OPEC policy, is whether than demand figure incorporates a large element of pre-tariff pre-stocking that will now reverse into 2Q/3Q.'
Citi has a 12-month price target for the Aramco at 29.5 SAR. The share is trading on Riyadh's Tadawul at SAR 25.6, up 2.4%, on Monday afternoon.
(Writing by Brinda Darasha; editing by Daniel Luiz)
