BAKU, Azerbaijan, May 12. Saudi Aramco’s downstream segment swung back to profitability in the first quarter of 2025, posting earnings before interest, income taxes, and zakat of $508 million, compared to a significant loss of $2.12 billion in the previous quarter, Trend reports.
According to the producer, the turnaround was largely driven by the absence of impairment charges that weighed on Q4 2024 results, along with favorable inventory valuation movements.
Despite the earnings rebound, results were softer than the $1.23 billion earned in Q1 2024 - a decline attributed to weakening refining and chemical margins, alongside certain non-cash adjustments. The downstream business continues to navigate a challenging global refining environment marked by margin pressures and volatile product demand.
Capital expenditures (capex) for the downstream segment saw a sharp quarter-on-quarter decline, falling 43.2% to $2.30 billion from $4.04 billion in Q4 2024. The reduction was primarily due to the phasing of capital spending, reflecting project scheduling and procurement cycles.
However, compared to the same period last year, capex rose 25.1% from $1.84 billion in Q1 2024. Aramco highlighted steady progress on strategic capital projects, including the integrated petrochemical steam cracker under development by S-OIL, the Amiral expansion at the SATORP refinery, and other downstream infrastructure upgrades aimed at bolstering the company’s refining and chemicals value chain.
