Saudi Arabia's state oil company, Saudi Aramco, has reported a 26% increase in profits for the first quarter of the year, reaching $33.6 billion (£26.9 billion), despite ongoing conflict in the Middle East. Revenue also rose nearly 7% year-on-year to $115.5 billion.
Pipeline Resilience Amid Geopolitical Tensions
The profit boost came as Aramco faced attacks on its infrastructure and a halt to exports through its Gulf ports. However, the company's east-west pipeline proved instrumental in mitigating the impact. Amin Nasser, Aramco's president and chief executive, stated: 'Our east-west pipeline, which reached its maximum capacity of 7 million barrels of oil per day, has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock and providing relief to customers affected by shipping constraints in the Strait of Hormuz.'
The Strait of Hormuz, through which approximately one-fifth of the world's oil and gas supply normally passes, has been effectively closed since the US-Iran war began in late February. Aramco's east-west pipeline enables the shipment of oil from its east coast to the Red Sea port of Yanbu, bypassing the strait.
Global Energy Market Impact
Disruption in the strait has triggered a spike in global energy prices, with Brent crude trading at around $100 per barrel—about 40% higher than pre-conflict levels. Nasser warned that even if the strait reopened immediately, it would take months for the market to return to normal. 'If trade flows resume immediately or today through the Strait of Hormuz, it will take a few months for the oil market to rebalance,' he said. 'But if trade and shipping remain curtailed by more than a few weeks from today, we anticipate the supply disruption to persist and the market to normalise only in 2027.'
His comments come as the US awaits a response from Iran to proposals for an interim deal to end the conflict. Recent fighting in and around the strait followed Donald Trump's announcement and subsequent pause of a naval mission aimed at opening the waterway.
Dividend and Ownership Structure
Aramco confirmed it would maintain its quarterly dividend at $21.9 billion, after increasing the payout by 3.5% at the end of last year. Saudi Arabia relies heavily on Aramco's dividends to fund domestic spending. The government directly owns more than 80% of the business, while its sovereign investor, the Public Investment Fund, holds 16%.
Headquartered in Dhahran, Saudi Arabia, Aramco employs over 76,000 people globally and ranks among the world's largest businesses and oil producers.
