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Aramco

Three strategic themes, Long-term growth

To be the world’s preeminent integrated energy and chemicals company, operating in a safe, sustainable, and reliable manner
Aramco’s vision

Three strategic themes

Aramco is the world’s largest crude oil company by production. Its strategy is to keep that position, to send more of its crude into its own refineries and chemical plants, and to build new businesses in digital, new energies, minerals, and industry. It also pays one of the world’s largest dividends, which in 2024 and again in the second quarter of 2026 was more than its free cash flow.

  1. 1OilKeep investing in crude oil through price cycles, as the world’s largest crude oil company by production.
  2. 2GasRaise sales gas production capacity by about 80% by 2030 compared with 2021, to meet demand in Saudi Arabia.
  3. 3Spare capacityMaintain a maximum sustainable capacity of 12.0 million barrels of crude oil a day, so production can be raised quickly.

ATotal hydrocarbon production rose to 12.9 million barrels of oil equivalent a day in 2025, from 12.4 million.

BProduction began at the Jafurah unconventional gas field in 2025, and its second phase is due to finish in 2027.,

CThe Zuluf crude oil increment is on track for 2026, and the Fadhili gas plant expansion for 2027.

Upstream preeminence

Sheet 1 of 3Valve V-1

More than half of Aramco’s crude goes into its own plants

Sending crude into its own refineries and chemical plants gives Aramco a buyer before the oil is sold. Its long-term goal is capacity for up to four million barrels a day in petrochemical complexes. Each barrel is 1% of the crude oil Aramco produces, and the filled barrels go into its own plants.

53%

of Aramco’s crude oil production used by its downstream businesses in 2025

Aramco has paid out more than its free cash flow

Aramco pays a base dividend that has risen every year for five years, plus a performance-linked dividend when profit allows.,

Free cash flow was held down by a $13.6 billion build in working capital.

Gearing, end of 2025
3.8%
Gearing, June 2026
6.2%

Dividends were $9.6bn more than free cash flow.

Capital spending in 2026

$25.1bn in the first half, against guidance for the year of $50bn to $55bn.

  1. Keep spare capacity, and say how much.

    Aramco holds a maximum sustainable capacity of 12.0 million barrels of crude oil a day, above what it usually produces, so it can raise output quickly when supply is disrupted. In its second quarter of 2026 results it points to responding to short-term market dynamics. We recommend planning for less than full use of what you can do, and writing down how much is held back for surprises.

  2. Secure the customer before you scale the supply.

    About 53% of Aramco’s crude oil production now goes into its own refineries and chemical plants, up from 43% in 2021, which fixes demand for the barrels it produces. We recommend tying growth in what you make to a buyer you already control, or have committed, before adding the capacity.

  3. Show the cash next to the commitment.

    Aramco’s dividends in 2024 were $124 billion against free cash flow of $85 billion, and its second quarter 2026 base dividend of $21.9 billion was above free cash flow of $12.3 billion, which was held down by a $13.6 billion build in working capital. We recommend putting the cash that pays for a commitment next to it, and giving the reason for any gap.

Sources

  1. 1. Aramco (2026). Annual Report 2025: Aramco overview and strategy. Aramco, accessed 28 September 2026. aramco.com
  2. 2. Aramco (2026). Annual Report 2025: Results and performance. Aramco, accessed 28 September 2026. aramco.com
  3. 3. Aramco (2026). Aramco announces second quarter and half year 2026 results. Aramco, accessed 28 September 2026. aramco.com

Headwater is not connected with Saudi Arabian Oil Company. Aramco, SABIC, and HUMAIN are trade marks of their owners. Updated 28 September 2026.

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