BAKU, Azerbaijan, May 12. Saudi Aramco reported a decline in free cash flow for the first quarter of 2025, as softer net cash from operating activities weighed on the company’s financial performance despite a drop in capital expenditures, Trend reports.
Free cash flow for Q1 2025 came in at $19.16 billion, down from $21.62 billion in the previous quarter and $22.76 billion in the same period last year. The $2.46 billion quarter-on-quarter decline was primarily driven by lower net cash provided by operating activities, which fell to $31.71 billion in Q1 2025 from $35.81 billion in Q4 2024.
Aramco attributed the reduction in operating cash to unfavorable movements in working capital, which partially offset gains from higher earnings and reduced tax and zakat settlements. The free cash flow performance compared to Q1 2024 also reflected similar pressures, with a $3.6 billion year-on-year decrease, largely due to lower earnings and increased upstream capital spending.
Despite these challenges, the company managed to slightly cushion the free cash flow decline with a reduction in capital expenditures, which fell to $12.55 billion in Q1 2025 from $14.18 billion in the previous quarter.
