Aramco’s 14% stock decline saps market value, stresses investors

Investors are expressing concern about Aramco’s sliding stock, which has sapped value from the world’s biggest oil producer as shares of competing companies rise.

Saudi Arabia-owned Aramco’s 14% decline has cut more than $133 billion this year from its market value on Riyadh’s Tadawul stock exchange and some $800 billion since its high of $2.4 trillion in 2022.

The disappointing share performance led Morningstar Investment Services to give a hold recommendation to Aramco, with industry analysts citing prospects for a dividend cut, a looming global oil surplus and a lack of long-term growth versus competitors, Bloomberg reports.

Among Aramco’s peers, shares of France’s Totalenergies have risen 8.6% since the end of 2024 and London-based BP is up 7.4%. In the U.S. Chevron shares have climbed 4.5% and ExxonMobil 1.9%.

Still, Aramco’s current market cap of $1.55 trillion makes it the world’s most valuable oil company, the company continues to pay the highest dividend in the industry and its bond sales this year and last enabled it to raise money to help finance growth.