Global Market: Saudi Aramco Q2 profit jumps 44% as Middle East conflict boosts oil prices

Saudi oil giant Aramco posted a 44% year-on-year rise in second-quarter net profit, benefiting from higher crude prices driven by the ongoing conflict in the Middle East, Reuters reported.

The world's largest oil exporter reported net income of 122.6 billion Saudi riyals ($32.7 billion) for the April-June quarter, compared with 85 billion riyals a year earlier, according to its earnings statement.

Adjusted net income, excluding exceptional items, came in at 125.1 billion riyals, ahead of the median analyst estimate of 116.9 billion riyals based on forecasts from 12 analysts.


Aramco's earnings were supported by elevated oil prices despite significant disruptions to regional energy supplies, including Iran's blockade of the Strait of Hormuz and attacks on Saudi-linked shipping in the Red Sea by Yemen's Houthi rebels.

The company said ongoing regional uncertainty resulted in higher hydrocarbon prices, lower sales volumes and stronger refining margins compared with the previous quarter.

Chief Executive Amin H. Nasser said the company maintained business continuity despite the disruption in the Strait of Hormuz, citing its diversified asset base, strategic infrastructure, including the East-West Pipeline, storage facilities and export terminals.

Reuters reported that Saudi Arabia has relied heavily on its East-West Pipeline to reroute crude exports to Red Sea ports, helping sustain shipments despite disruptions in the Gulf.

Data from Riyadh-based think tank Jadwa showed Saudi crude production fell from about 10.1 million barrels per day in January to 6 million barrels per day in early April, before recovering to 7.1 million barrels per day in June.

The earnings announcement came as major global oil companies continued to report strong quarterly results amid higher energy prices. U.S. oil majors ExxonMobil and Chevron have also posted robust profits in recent days.

U.S. President Donald Trump criticised oil producers for benefiting from the supply disruption, saying energy companies were earning excessive profits while higher fuel prices remained a political concern ahead of the November mid-term elections.

The conflict has also heightened security risks for Saudi energy infrastructure. Yemen's Iran-backed Houthi movement has declared a maritime blockade of Saudi Arabia and targeted tankers in the Red Sea, while Saudi authorities have accused Iranian-backed militias in Iraq of attacking petroleum infrastructure.

During a media briefing, Nasser said attacks targeting Saudi Arabia in July had no material impact on Aramco's operational capabilities.

Aramco remains central to Saudi Arabia's economy and is a key pillar of Crown Prince Mohammed bin Salman's Vision 2030 strategy to diversify the kingdom beyond oil; however, hydrocarbon revenues continue to underpin government finances.

Reuters reported that Saudi energy infrastructure in Riyadh, the Eastern Province and Yanbu has faced repeated attacks during the five-month regional conflict, including facilities linked to oil production, transportation, refining, petrochemicals and power generation.