Saudi Aramco reported a 25 per cent jump in first-quarter profit on Sunday showing its resilience as U.S.-Iran war tensions curtail Strait of Hormuz shipping, with the state oil giant’s East-West crude pipeline running at full capacity to mitigate the impact to supplies.
The world’s top oil exporter earned a net profit of $32.5 billion in the three months ended March 31, beating an LSEG consensus estimate of $30.95 billion.
Total revenue surged nearly 7 per cent from a year earlier to $115.49 billion due to higher prices and volumes sold of both crude oil and refined and chemical products.
Iran’s blockade of shipping through the crucial Hormuz waterway amid the U.S.-Israeli conflict which has curtailed energy supply and sent prices surging, prompted Aramco to ramp up crude flows from its east coast to the Red Sea port of Yanbu, Reuters reported.
“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,” Aramco Chief Executive, Amin Nasser said, adding that “reliable energy supply is critical.”
The pipeline can supply about 2 million bpd to refineries on Saudi Arabia’s west coast, leaving 5 million bpd for export.
During the war, Saudi Arabia cut output by 2 million bpd after Iran blockaded Hormuz, a waterway that carried a fifth of world oil supply before the war. The line mainly carries Arab Light and some Arab Extra Light, with heavier grades curtailed.
Aramco’s adjusted quarterly net profit was $33.6 billion, beating a company-provided median analyst estimate of $31.16 billion. The figure strips out $1.06 billion in non-operational accounting items.
Besides, capital expenditure fell slightly to $12.1 billion in the quarter from $12.5 billion a year prior, and was sharply down from $13.4 billion in the fourth quarter. Aramco had outlined $50-55 billion in capital expenditure this year.
Aramco also declared a first-quarter base dividend of $21.9 billion, up 3.5 per cent year-on-year and payable in the second quarter, in line with expected total dividends of $87.6 billion for 2026. It had also introduced a performance-linked dividend in 2023 linked to free cash flow.
The Saudi state relies heavily on Aramco’s payouts to fund domestic spending and cover budget gaps. The government directly owns almost 81.5 per cent of the company, while the Public Investment Fund (PIF) holds 16 per cent.
In the same vein, free cash flow slipped to $18.6 billion from $19.2 billion a year earlier, impacted by a $15.8 billion rise in working capital. Aramco’s gearing – measuring its debt compared to equity – rose to 4.8 per cent at March 31 from 3.8 per cent at the end of 2025.
Trump: Iran Playing Games with US, Entire Globe
Meanwhile, President Donald Trump issued a statement on Truth Social Sunday afternoon in which he said Iran “has been playing games with the United States, and the rest of the World, for 47 years.” The president did not address an Iranian response or whether he or his administration officials were reviewing anything but he warned, “They will be laughing no longer!”
Trump has repeatedly insisted the ceasefire remains intact despite the continued exchange of hostilities and mirroring naval blockades. The U.S. launched strikes against Iran last week in retaliation for an attack on U.S. Navy destroyers, with Trump initially dismissing it as just “a love tap.”
Trump, in a wide-ranging interview that aired Sunday on “Full Measure,” said the U.S. has hit “probably 70 percent” of its targets and that Iran has “no leaders” and “no military.” But he added that combat operations have not ended.
Iranian President Masoud Pezeshkian said in an X post Sunday, “We will never bow our heads before the enemy, and if talk of dialogue or negotiation arises, it does not mean surrender or retreat.”
Besides, Iran’s Deputy Foreign Minister for Legal and International Affairs, Kazem Gharibabadi, warned that “any deployment and stationing of extra-regional destroyers around the Strait of Hormuz, under the pretext of ‘protecting shipping,’ is nothing but an escalation of the crisis, the militarisation of a vital waterway, and an attempt to cover up the true root of insecurity in the region.”
The war continues to jolt the global economy, and Americans are feeling the pain at the pump.
The average petrol price per gallon is $4.52 and climbing, according to motorist group AAA. Last year’s average was $3.14.
The Strait of Hormuz, the key trade route through which 20 per cent of the world’s oil flows – remains closed by Iran, despite international calls to allow for the safe passage of cargo ships.
Emmanuel Addeh
