Saudi Aramco posted a sharp rise in first-quarter profit on Sunday, benefiting from higher crude prices and strong export demand as tensions around the Strait of Hormuz disrupted global oil flows.
The Saudi oil giant reported net profit of $32.5 billion for the quarter ended March 31, up 25% from a year earlier and ahead of analyst expectations of $30.95 billion. Revenue climbed nearly 7% year-on-year to $115.49 billion, supported by stronger crude oil prices along with increased sales of refined and chemical products.
The results come at a time when global energy markets are under pressure due to the ongoing U.S.-Iran conflict and shipping disruptions through the Strait of Hormuz — one of the world’s most critical oil transit routes.
To maintain stable exports, Aramco increased shipments through its East-West Pipeline, which connects Saudi Arabia’s eastern oil fields to the Red Sea port city of Yanbu. According to CEO Amin Nasser, the pipeline operated at its full capacity of 7 million barrels per day during the crisis.
Nasser described the pipeline as a “critical supply artery” that helped reduce the impact of the global energy shock, stressing that reliable energy supplies remain essential during periods of geopolitical instability.
The pipeline is capable of supplying around 2 million barrels per day to Saudi Arabia’s western refineries, while the remaining capacity supports crude exports through the Red Sea, bypassing the Strait of Hormuz.
Saudi Arabia had earlier reduced oil production by around 2 million barrels per day after Iran’s blockade affected tanker traffic in the region. Before the conflict escalated, the Strait of Hormuz carried nearly one-fifth of the world’s oil supply.
Aramco’s adjusted net income for the quarter reached $33.6 billion after excluding non-operational accounting items, also beating analyst forecasts.
Meanwhile, capital expenditure fell slightly to $12.1 billion compared to $12.5 billion in the same quarter last year. The company has previously outlined plans to spend between $50 billion and $55 billion in capital projects during 2026.
The oil producer also announced a first-quarter base dividend of $21.9 billion, marking a 3.5% increase from a year earlier. The payment aligns with Aramco’s expected annual dividend distribution of $87.6 billion for 2026.
Saudi Arabia continues to rely heavily on Aramco’s dividends to support government spending and economic projects. The Saudi government owns more than 81% of the company, while the Public Investment Fund holds an additional 16% stake.
Despite the strong earnings growth, free cash flow edged lower to $18.6 billion due to higher working capital requirements. The company’s gearing ratio also increased to 4.8% at the end of March from 3.8% at the close of 2025.