Oil giant shares stunning profit update that could have wide-ranging impacts: 'Not a good year globally'

The world's most profitable oil company is reporting major losses, all while clean energy continues to score big wins.

Saudi oil giant Aramco recently announced a steep drop in income, with net profit falling to $106.2 billion in 2024, down from $121.3 billion the year prior, according to CNBC. 

The company also announced it expected to see dividends slashed, projecting a payout decline from last year's $124.2 billion to $85.4 billion in 2025 — a blow to Saudi Arabia's finances, which rely heavily on that cash.

While that's still an immense total of money, Aramco's CEO, Amin Nasser, told CNBC that it was "not a good year globally," pointing to weak oil prices and sluggish downstream performance. 

He said he remained optimistic about long-term returns, particularly if global oil supply disruptions create sudden spikes in demand.

But the drop in Aramco's earnings may reflect a bigger shift underway: fossil fuel investments losing their appeal.

As oil companies struggle to meet expectations, clean energy industries are showing signs of long-term resilience. 

Solar and wind power are becoming more affordable and accessible, and battery innovations are scaling up across sectors.

Some forward-looking companies are building electric trucks to reduce harmful pollution, and others are turning plastic waste into durable roads.

Although early ESG investing — standing for "environmental, social, and governance" — was overhyped, the clean economy is steadily proving its staying power, driven by solutions that offer real-world benefits.

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From new job opportunities to strong long-term returns, clean energy is becoming the smarter financial bet.

There are already signs of this trend in places like Indiana, where a $3.5 billion electric vehicle battery factory is set to bring 1,600 new jobs. Meanwhile, autonomous electric tractors and robotic farming innovations are helping farmers cut costs and boost productivity.

Aramco's decline is also putting pressure on Saudi Arabia's Vision 2030, a plan to diversify its economy and ultimately rely less on oil. 

With dividend revenue shrinking, the kingdom may struggle to fund this transition.

Nasser said he remains hopeful. "We are expecting an additional cash flow that will come from these investments for about $17-$20 billion by 2030, from downstream alone," he told CNBC.

He added that the company could still benefit from future supply disruptions. "We have the capacity to put 3 million barrels in the market … that will also give you a huge upside," he said.

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