Aramco sees profits surge amid oil price volatiity

Aramco reported sharply increased profits for the first quarter of 2026, amid higher oil prices as a result of the US/Iran war and the blockade of the Strait of Hormuz

The energy giant's profits rose to US$32.6bn in the first quarter, from US$26.6bn in Q1 2025, an increase of 25%.

During the quarter, geopolitical developments in the Middle East significantly impacted global energy markets and resulted in massive supply disruption, with supply losses of more than 1bn bbl since the start of the conflict, increasing oil price volatility. In response, Aramco swiftly activated its business continuity plans to support continuity of global oil and product supplies, rerouting crude oil volumes via the East-West Pipeline to utilise alternative export routes, while also leveraging its domestic and international storage capacity. This enabled Aramco to deliver strong financial results despite impacts to certain Aramco facilities (including the giant Manifa oilfield) and ongoing regional instability. These events did not materially impact Aramco’s financial position, results of operations, or cash flows, according to the company.

“Aramco’s first quarter performance reflects strong resilience and operational flexibility in a complex geopolitical environment,” said Amin H. Nasser, Aramco’s CEO. “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 and providing relief to customers affected by shipping constraints in the Strait of Hormuz.

He added that recent events have demonstrated the vital contribution of oil and gas to energy security and the global economy, serving as 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," he continued paying tribute to the professionalism, determination and expertise of the company's people.

Aramco notes that supply shock is hitting an already tight market with limited inventory in the face of higher H2 seasonal demand, reinforcing the recognition of the critical importance of crude supplies.

In terms of operational activity, Aramco continued to deliver strong upstream performance despite regional uncertainty through its operational resilience and flexibility. Total hydrocarbon production in the first quarter of 2026 was 12.6 mmboed, an increase of 0.3mn boed compared to the same period in 2025, which Aramco says reflects its ability to adapt to changing market conditions and showcases the scale and flexibility of its assets, supported by its operational and technical capabilities and robust contingency planning. Progress was made on projects to maintain MSC at 12.0 mmbpd. Aramco notes construction activities advanced for the Zuluf crude oil increment, which is expected to process 600mn bpd of crude oil from the Zuluf field through a central facility in 2026. Engineering, procurement, and construction activities progressed for phase two of the Dammam development project, which is expected to be onstream in 2027, adding crude oil production capacity of 50 mbpd.

Aramco continued to progress its strategy to increase sales gas production capacity by approximately 80% through the following developments during the quarter. Phase one of the Jafurah Gas Plant advanced toward full production capacity and successfully exported the first shipment of condensate to customers. Procurement and construction activities progressed for phase two, which is expected to be completed in 2027. Production from Jafurah is expected to reach  2.0 bscfd by 2030, in addition to significant volumes of ethane, NGL, and condensate. Construction activities progressed for the Fadhili Gas Plant expansion, which is expected to add additional raw gas processing capacity of 1.5 bscfd by 2027. Despite temporary disruptions at certain domestic refining and processing facilities, Aramco maintained strong supply reliability of 96.3% in the first quarter by leveraging its integrated global network.