Saudi Aramco profits jump 33% in second quarter

Source Credit : Portfolio Prints

Saudi Aramco reported a sharp increase in second-quarter profit on Tuesday, benefiting from higher oil prices and demonstrating resilience despite significant disruptions to shipping routes through the Strait of Hormuz during the ongoing Middle East conflict.

The world's largest oil producer posted adjusted net income of 125.2 billion Saudi riyals ($33.4 billion) for the April–June quarter, a 33% increase from a year earlier and above analyst expectations of $31.59 billion.

Aramco's results mirror a broader trend across the energy sector, with major oil companies recording strong earnings as geopolitical tensions between the United States and Iran pushed fossil fuel prices higher.

The conflict, now more than five months old, has expanded beyond its initial fronts, drawing additional regional players into the crisis, including Iraq and Egypt. The resulting disruption to maritime trade through the Strait of Hormuz has heightened concerns over global energy supplies.

To mitigate these risks, Aramco has relied heavily on its 1,200-kilometer (746-mile) East-West Pipeline, which transports crude oil to the Red Sea and allows exports to bypass the Strait of Hormuz. The company said the pipeline has helped maintain export capacity of up to 7 million barrels per day.

• Cash flow from operating activities reached $25.4 billion.


• The gearing ratio increased to 6.2% at the end of June, up from 4.8% at the end of the first quarter.


• Aramco continued utilizing its East-West Pipeline to enhance supply flexibility and ensure export reliability.

“Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by capitalizing on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West Pipeline, storage capacity, and export terminals,” Aramco President and CEO Amin H. Nasser said in a statement.

“That enabled us to sustain production and exports while advancing key projects, despite the challenging regional environment,” he added.

Aramco's board approved a second-quarter base dividend of $21.9 billion, which will be distributed over the next three months.

The company attributed the strong rise in revenue primarily to higher prices for crude oil, refined products, and petrochemicals, although gains were partly offset by lower sales volumes across these segments.

Meanwhile, U.S. President Donald Trump criticized major American oil producers on Monday, accusing them of profiting excessively from elevated fuel prices linked to the Iran conflict.

“They’re making too much money based on a shortage,” Trump told reporters at the White House. “I don’t like it.”

The comments came after major U.S. energy companies reported robust quarterly results. Exxon Mobil more than doubled its second-quarter profit to $14.5 billion from a year earlier, while Chevron's earnings surged nearly 400% to $12 billion, compared with $2.5 billion in the same period last year.

Both companies have yet to publicly respond to Trump's remarks.