Aramco to restart Ras Tanura; approves $3 billion buyback amid West Asia conflict

Saudi Aramco’s CEO on Tuesday, March 10, said the company has not cut refining output at its facilities except at the Ras Tanura refinery, according to a Bloomberg report.

President & CEO of the company, Amin H Nasser, said that the company is "exporting mainly Arab light grade" crude through the East-West pipeline and is preparing the Ras Tanura refinery to resume operations.

The remarks come as the Saudi-owned oil major moves to stabilise operations after the Middle East conflict disrupted parts of its infrastructure and export routes.

Aramco has approved a $3 billion share buyback programme and increased its dividend payout, in a move aimed at boosting investor confidence after recent operational setbacks linked to the conflict.

The company temporarily reduced oil output and shut the Ras Tanura refinery — Saudi Arabia’s largest — following a drone attack, forcing it to adjust exports and logistics.

Aramco has also been rerouting shipments as traffic through the Strait of Hormuz slowed sharply, creating bottlenecks for crude exports across the region. The near-standstill in the key shipping route has caused storage tanks to fill up and prompted several major OPEC producers, including Iran, Kuwait and the United Arab Emirates, to scale back production.

Oil prices have surged amid the disruption, with crude briefly rising above $100 a barrel on Monday before easing after US President Donald Trump said the Iran war could end soon.

As part of its shareholder returns, Aramco said it will raise its base dividend to $21.9 billion for the quarter ended December 31, a 3.5% increase from the previous quarter, in line with analyst expectations.

The company’s free cash flow rose to $27.5 billion in the quarter, enough to cover the dividend for a second consecutive quarter after previously falling short.

Aramco also plans to repurchase up to 350 million ordinary shares over an 18-month period starting in March, marking the first share buyback programme since its record 2019 public listing. The company may retain the repurchased shares for up to 10 years.

The higher dividend will primarily benefit the Saudi government and the kingdom’s sovereign wealth fund, which together hold about 97% of Aramco’s shares and rely on the payouts to fund Saudi Arabia’s economic diversification plans.

Aramco’s stock has gained about 14% so far this year, though it has lagged global oil majors such as Shell Plc, Exxon Mobil Corp. and Chevron Corp. Meanwhile, BP Plc has paused its share buybacks to strengthen its balance sheet, while Shell has continued its repurchase programme.

Q4 and 2025 full-year earnings results

Earlier on Tuesday, Saudi Aramco reported fourth-quarter net income of $17.8 billion, down about 20% from $22.3 billion in the year-ago period.

For the full year 2025, the company’s net profit fell 12% to $93.4 billion, compared with $106.2 billion in 2024. Revenue and other income related to sales stood at $111 billion in the fourth quarter, versus $114.3 billion a year earlier.