Saudi Arabian Oil Co

Aramco maintains a strong liquidity position with a current ratio of 2.22, supported by cash and equivalents of SAR 243.97 billion, though its free cash flow is negative at SAR -31.43 billion, reflecting significant capital expenditures of SAR -40.62 billion. The company's debt-to-equity ratio of 0.19 indicates a conservative capital structure, with long-term debt of SAR 291.83 billion compared to total equity of SAR 1.52 trillion.

Profitability metrics show a return on equity of 6.78% and return on assets of 4.17%, both below the industry median for integrated oil and gas firms. Operating income of SAR 202.05 billion and net income of SAR 103.36 billion reflect strong performance in a high-margin sector, but gross profit of SAR 251.33 billion suggests moderate cost control relative to revenue of SAR 437.85 billion.

Geographically, Aramco's revenue is heavily concentrated in the Middle East, with minimal diversification into international markets. Segment-wise, upstream operations dominate, contributing the majority of revenue and profit, while downstream and petrochemicals segments show lower margins and growth potential.

Outlook for the current fiscal year indicates a revenue growth trajectory, supported by stable crude prices and production capacity. However, the next fiscal year may see margin compression due to rising input costs and geopolitical volatility. Free cash flow is expected to remain negative as capital expenditures continue to support long-term infrastructure projects.

Risk factors include medium liquidity risk due to negative net cash after subtracting total debt, and low dilution risk as the company has not issued new shares recently. Adjustments in valuation models reflect conservative debt assumptions and a stable earnings profile.

Recent filings and transcripts highlight strategic investments in renewable energy and carbon capture, signaling a long-term shift toward sustainability. Analysts remain cautiously optimistic, with a mean price target of SAR 29.12 and a median of SAR 29.00, though a significant portion of recommendations are "hold".

Saudi Arabian Oil Company (2222.SE) has initiated its first formal analysis, marking the baseline for future performance tracking. As this is the inaugural assessment for the ticker, there is no prior data to compute material changes or deltas. Consequently, the current snapshot serves as the foundational reference point for the company’s operational and financial metrics. The most significant development in this initial review is the addition of several notable operating assets to the company’s portfolio. These additions include the Wafra field-Mina Saud Oil Pipelines in Kuwait, the Gorgon Oil and Gas Project and Jansz-Io Oil and Gas Field in Western Australia, and the Abu Sa`fah Oil Field in Saudi Arabia. All identified assets are currently operating and primarily focused on oil and gas extraction or pipeline infrastructure. These asset additions highlight the company’s diverse geographic footprint, spanning key regions such as the Middle East and Australia. The inclusion of both extraction sites and pipeline infrastructure underscores a comprehensive approach to upstream and midstream operations. This broad asset base is critical for understanding the scale and reach of Saudi Arabian Oil Company’s energy production capabilities. Despite the significant asset updates, recent market activity has been minimal. Cross-source signals indicate low dispatch volumes over the past month, with only sporadic activity recorded on specific dates in late June and early July 2026. With no analyst coverage, index memberships, or top holder data currently available, the focus remains on the structural composition of the company’s operating assets as the primary driver of its profile.

The debt-to-equity ratio of 0.19 is well below the cohort median of 0.49, indicating a strong balance sheet.

Analysts assign a buy recommendation with a mean price target of 29.12, implying 8.3% upside from the current price.

Credit risk is assessed as low, suggesting minimal probability of default despite recent fluctuations in free cash flow.

Free cash flow turned negative in FY-1 and FY0, dropping to -153.9 billion SAR and -67.6 billion SAR respectively.

Revenue and net income are projected to decline, with a four-year CAGR of 2.7% and -3.1% respectively.

Return on equity of 6.78% falls below the cohort median of 8.49%, indicating lower profitability relative to shareholder equity.

Cash conversion ratio of 1.22 is below the cohort median of 1.77, signaling weaker efficiency in converting earnings to cash.

Liquidity risk is rated as medium, potentially constraining the company's ability to meet short-term obligations during cash flow downturns.

Revenue SAR 416.29B, −2,9% YoY; Operating income −10,7% YoY.

• ▍Revenue SAR 416.29B, −2,9% YoY
• ▍Operating income −10,7% YoY
• ▍Net income −19,9% YoY
• ▍Free cash flow +30,2% YoY
• ▍Net margin 16.7%

Revenue SAR 418.16B, −10,0% YoY; Operating income +0,4% YoY.

• ▍Revenue SAR 418.16B, −10,0% YoY
• ▍Operating income +0,4% YoY
• ▍Net income −0,4% YoY
• ▍Free cash flow +90,3% YoY
• ▍Net margin 23.3%

Revenue SAR 407.14B, −13,5% YoY; Operating income −19,1% YoY.

• ▍Revenue SAR 407.14B, −13,5% YoY
• ▍Operating income −19,1% YoY
• ▍Net income −19,3% YoY
• ▍Free cash flow +35,3% YoY
• ▍Net margin 21.0%

Revenue SAR 429.61B, −1,9% YoY; Operating income −5,3% YoY.

• ▍Revenue SAR 429.61B, −1,9% YoY
• ▍Operating income −5,3% YoY
• ▍Net income −7,4% YoY
• ▍Free cash flow +78,6% YoY
• ▍Net margin 22.3%

Revenue SAR 428.59B; Operating income SAR 173.31B.

• ▍Revenue SAR 428.59B
• ▍Operating income SAR 173.31B
• ▍Net margin 20.2%

Revenue SAR 464.62B; Operating income SAR 192.81B.

• ▍Revenue SAR 464.62B
• ▍Operating income SAR 192.81B
• ▍Net margin 21.0%

Revenue SAR 470.61B; Operating income SAR 206.45B.

• ▍Revenue SAR 470.61B
• ▍Operating income SAR 206.45B
• ▍Net margin 22.6%

Revenue SAR 437.85B; Operating income SAR 202.05B.

• ▍Revenue SAR 437.85B
• ▍Operating income SAR 202.05B
• ▍Net margin 23.6%

Revenue SAR 1.67T, −7,2% YoY; Operating income −8,8% YoY.

• ▍Revenue SAR 1.67T, −7,2% YoY
• ▍Operating income −8,8% YoY
• ▍Net income −11,6% YoY
• ▍Free cash flow +56,1% YoY
• ▍Net margin 20.8%

Revenue SAR 1.80T, −3,0% YoY; Operating income −11,4% YoY.

• ▍Revenue SAR 1.80T, −3,0% YoY
• ▍Operating income −11,4% YoY
• ▍Net income −13,0% YoY
• ▍Free cash flow −682,1% YoY
• ▍Net margin 21.9%

Revenue SAR 1.86T, −18,1% YoY; Operating income −23,8% YoY.

• ▍Revenue SAR 1.86T, −18,1% YoY
• ▍Operating income −23,8% YoY
• ▍Net income −24,2% YoY
• ▍Free cash flow −90,3% YoY
• ▍Net margin 24.4%

Revenue SAR 2.27T, +50,9% YoY; Operating income +48,6% YoY.

• ▍Revenue SAR 2.27T, +50,9% YoY
• ▍Operating income +48,6% YoY
• ▍Net income +51,1% YoY
• ▍Free cash flow +182,0% YoY
• ▍Net margin 26.4%