Saudi Aramco, the world’s largest oil producer, reported a 5% year-on-year decline in first-quarter net profit, citing lower crude oil prices and reduced production.

The state-owned energy giant posted a net income of $26 billion for the three months ending March 31, down from $27.3 billion in the same period last year, according to a company statement released Sunday.

The result slightly exceeded analyst expectations of $25.3 billion.

The company’s free cash flow also weakened, falling to $19.2 billion from $22.8 billion in Q1 2024, while cash flow from operating activities dropped to $31.7 billion from $33.6 billion a year earlier.

These figures reflect ongoing challenges for Aramco as global oil prices remain subdued and demand softens amid trade pressures.

In a further sign of financial strain, Aramco confirmed it would maintain its sharply reduced performance-linked dividend at $200 million for Q1 2025, payable in the second quarter.

This follows a drastic cut from $10.2 billion in Q4 2024, signaling a cautious approach to capital management.

Its base dividend for the first quarter rose 4.2% year-on-year to $21.1 billion.