As Hormuz dangers force the pipeline to maximum capacity, Aramco’s Q1 profit soars by 25%.
With the national oil giant’s East-West crude pipeline operating at full capacity to lessen the impact on supply, Saudi Aramco announced a 25% increase in first-quarter profit on Sunday, demonstrating its endurance as US-Iran war tensions restrict ships across the Strait of Hormuz.
In the three months ending March 31, the largest oil exporter in the world made a net profit of $32.5 billion, exceeding the $30.95 billion LSEG consensus projection.
Due to increased pricing and sales volumes of both crude oil and refined and chemical products, total income increased by about 7% to $115.49 billion over the previous year.
Aramco increased petroleum flows from its east coast to the Red Sea port of Yanbu in response to Iran’s blockade of shipping via the vital Hormuz strait amid the U.S.-Israeli conflict, which has reduced energy supply and caused prices to soar.
NASSER SAYS, “RELIABLE SUPPLY IS CRITICAL.”Amin Nasser, CEO of Aramco, stated that “reliable energy supply is critical” and that “our East-West Pipeline, which reached its maximum capacity of 7.0 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.”
About 2 million barrels per day can be supplied by the pipeline to refineries on the west coast of Saudi Arabia, leaving 5 million barrels per day for export.
Following Iran’s blockade of Hormuz, a waterway that supplied one-fifth of the world’s oil supply before to the conflict, Saudi Arabia reduced its output by two million barrels per day. Heavy grades are limited on the line, which primarily carries Arab Light and some Arab Extra Light.
The company’s median analyst forecast of $31.16 billion was exceeded by Aramco’s adjusted quarterly net profit of $33.6 billion. $1.06 billion in non-operational accounting items are subtracted from the total.
Capital expenditures dropped dramatically from $13.4 billion in the fourth quarter to $12.1 billion in the quarter, down from $12.5 billion a year earlier. This year, Aramco planned to spend between $50 and $55 billion on major projects.
Q1 HIGHER DIVIDEND ANNOUNCED
In keeping with the projected total payouts of $87.6 billion for 2026, Aramco announced a base dividend of $21.9 billion for the first quarter, up 3.5% year over year and payable in the second quarter.
In 2023, it also implemented a free cash flow-based performance-linked dividend.
Aramco’s dividends are a major source of funding for the Saudi government’s domestic expenditures and budget deficits. The Public Investment Fund controls 16% of the corporation, while the government directly owns over 81.5%.
Due to a $15.8 billion increase in working capital, free cash flow decreased to $18.6 billion from $19.2 billion in the previous year. Aramco’s gearing – measuring its debt compared to equity – rose to 4.8% at March 31 from 3.8% at the end of 2025.