Sonatrach Posts 603 Billion Dinar Net Profit, Expands 2025 Investments
Sonatrach reported a net profit of 603 billion dinars and increased its investment efforts by 29% in 2025, demonstrating resilience despite a declining oil market. The national company also boosted local content and expanded its refining capacity and international partnerships.
Sonatrach recorded a net profit of 603 billion dinars (approximately $5 billion) in 2025, with an investment effort increasing by 29%. The national public group achieved a turnover of 5,748 billion dinars (approximately $43.7 billion), of which 5,230 billion dinars (around $40 billion) came from exports. Despite a downturn in the oil market, which saw Brent crude finish 2025 at $62.55 per barrel amidst slowing global demand and geopolitical tensions, Sonatrach maintained its financial stability. Nour Eddine Daoudi, the company's CEO, highlighted Sonatrach's demonstrated "resilience and adaptability" during this period. The company dedicated 1,078 billion dinars ($7.9 billion) to investments within Algeria, underscoring its commitment to strengthening production and transformation capacities.
Upstream oil and gas activities remained Sonatrach's top priority, absorbing 69% of the total investment budget, amounting to 740 billion dinars ($5.4 billion). This included 577 billion dinars ($4.2 billion) from the company's own funds. Development and exploitation of deposits alone mobilized 635 billion dinars ($4.7 billion). The year saw 17 hydrocarbon discoveries, all achieved through Sonatrach's own efforts, and the completion of 134 development wells, marking an 18% increase over 2024. Production of primary hydrocarbons remained stable at 193.7 million tons of oil equivalent (TOE), while sales volume grew by 1.4% to 165.1 million TOE. Additionally, Sonatrach reduced gas flaring by 31% compared to 2020, to 2.61 billion cubic meters.
To address the country's growing energy demand, with national hydrocarbon sales rising by 6% to 76.1 million TOE, Sonatrach accelerated its initiatives in refining and petrochemicals. A contract was signed with Sinopec on November 17, 2025, for a hydrotreating and reforming unit in Arzew, projected to more than double annual gasoline production from 550,000 to 1.2 million tons. This expansion is complemented by the new Hassi Messaoud refinery and units in Arzew and Skikda, aiming to increase domestic production and reduce imports. Furthermore, Sonatrach expanded its network of partners, signing five production-sharing contracts and securing gas agreements with Slovenia and the Czech Republic, alongside memoranda of understanding with African and Asian partners for projects including green hydrogen. Algerian companies also secured 2,150 contracts with Sonatrach, representing 83% of the total number and 60% of the value of commitments, fostering 100% national integration for certain manufactured components like wellheads and drilling tools.
