Oil & Gas

Kuwait’s state oil operator, Kuwait Petroleum Corporation (KPC), reported a 6.5 percent decline in net profit for the 2024-2025 fiscal year, primarily due to a drop in global petroleum prices. Net earnings fell to around KD1.36 billion ($4.5 billion), down from approximately KD1.46 billion in the previous fiscal year, according to a report published by the Kuwaiti daily Al-Rai. The dip reflects both external market pressures and internal production challenges faced by the Opec member nation.

KPC’s total revenues also declined during the fiscal year that ended on March 31, 2025, shrinking by about 4 percent year-on-year to nearly KD35 billion. Total expenditure, which includes contributions to the state budget, dropped by roughly 3.6 percent to KD34.7 billion. Meanwhile, the corporation’s assets saw a modest increase of 1.4 percent, reaching KD563 billion by the end of March.

The decline in profit was largely attributed to lower oil prices and reduced output from Kuwait Oil Company (KOC), KPC’s upstream subsidiary. Despite the production dip, KOC managed to increase its oil production capacity to a seven-year high of around 2.59 million barrels per day, thanks to recently completed expansion projects. This milestone marks progress in Kuwait’s broader energy strategy despite near-term revenue pressures.

Looking ahead, KOC aims to boost production capacity to 3.5 million barrels per day by 2035 and 4 million barrels by 2040. Kuwait is also advancing plans to consolidate its eight state-run hydrocarbon companies to improve efficiency and cut costs. With an estimated 101 billion barrels of extractable crude reserves—the sixth largest globally—the Gulf state is positioning itself for long-term energy security, with current reserves expected to last over a century.