Saudi oil giant Aramco has announced a 25 per cent increase in its first-quarter profits compared to the same period last year, driven by increased exports via a pipeline that bypasses the Strait of Hormuz. The world's largest oil company achieved this despite ongoing disruptions in the critical shipping lane caused by the conflict involving Iran.
Financial Performance
The state-owned Saudi Arabian Oil Co. posted a profit of $32.5 billion for the quarter ending 31 March, marking a significant turnaround after reporting a 12 per cent decline in its annual profits for 2025. This surge underscores the company's ability to adapt to geopolitical challenges.
CEO Statement
Amin H. Nasser, Aramco's President and CEO, stated: "Aramco’s first-quarter performance reflects strong resilience and operational flexibility in a complex geopolitical environment." He confirmed that the company's East-West Pipeline, which runs across Saudi Arabia from its eastern oil fields to the Red Sea, is now operating at its maximum capacity of 7 million barrels of oil per day. This pipeline "is helping to mitigate the impact of a global energy shock and providing relief to customers."
Geopolitical Context
However, the pipeline cannot fully replace the capacity lost from the Strait of Hormuz. Before the conflict, 20 per cent of the world’s traded oil, along with large quantities of natural gas, fertiliser, and other petroleum products, typically flowed through the strait daily. Iran effectively seized control of the vital waterway after the US and Israel attacked it on 28 February, with a US naval blockade imposed last month further complicating its use.
Mr Nasser concluded: "Recent events have clearly demonstrated the vital contribution of oil and gas to energy security and the global economy, and are a stark reminder that reliable energy supply is critical. Despite these headwinds, Aramco remains focused on its strategic priorities and is leveraging both its domestic infrastructure and its global network to navigate disruption."
