Industry

Aramco's profits rose by 25% in the first quarter of 2026. (image source: Aramco)

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.

CSC and Honeywell will drive innovative OT cyber solutions aimed at safeguarding critical industrial infrastructure in the UAE. (Image source: Honeywell)

The UAE Cyber Security Council (CSC) and Honeywell are joining forces to develop advanced cybersecurity programmes across the country, with the aim of building local cyber resilience capabilities

Through this collaboration, CSC and Honeywell will work to localise cyber services, advance capacity-building initiatives, and support the development of forward-looking cyber policies aligned with national frameworks. Using their combined advanced technologies, they will drive innovative OT cyber solutions aimed at safeguarding critical industrial infrastructure in the UAE.

Honeywell plays a key role in advancing industrial cybersecurity across the Middle East by delivering localised solutions that enable organisations to address evolving threats. Honeywell’s latest 2025 Cyber Threat Report found a 46% increase in ransomware extortion incidents globally during the most recent reporting period, while 55% of self-reported cybersecurity incidents in 2024 were direct attacks on operational technology.

Through its local Cybersecurity Center of Excellence, Honeywell will provide training, advanced cybersecurity solutions, and support key sectors such as energy, manufacturing, and infrastructure, helping companies to respond effectively to an increasingly complex and evolving threat landscape.

His Excellency Dr. Mohamed Al Kuwaiti, head of Cybersecurity for the UAE Government, said, "This collaboration reflects the Cyber Security Council’s commitment to continuing and strengthening cooperation with leading global technology companies to enhance cyber resilience, develop local expertise, and ensure the UAE maintains its leadership at the forefront of cybersecurity innovation."

"In an increasingly interconnected and digital world, strengthening cybersecurity capabilities is essential to protect national infrastructure and enable sustainable economic growth. As sectors in the UAE become more interconnected and the convergence between information technology and operational technology accelerates, the need to safeguard critical industrial infrastructure from escalating cyber threats becomes more pressing."

Uygar Doyuran, vice president and general manager of Honeywell Process Automation in the Middle East, Turkey and Africa, added, "Our collaboration with the Cyber Security Council reinforces Honeywell’s commitment to supporting the UAE’s industrial and digital transformation priorities. By combining our global cybersecurity expertise with strong local capabilities, we are helping organisations across critical sectors enhance resilience, protect industrial operations, and build the skills needed to counter evolving cyber threats".

The partnership will deploy cutting-edge Industrial AI Vision technology across manufacturing operations. (Image source: du)

du, the leading telecom and digital services provider, has partnered with Al Gharbia Pipe Company (AGPC), an Abu Dhabi-based producer of longitudinally submerged arc welded (LSAW) steel pipes, to deploy cutting-edge Industrial AI Vision technology across manufacturing operations in the UAE

The partnership, announced at Make it in the Emirates 2026, centres on the co-developed Industrial AI Vision Platform, an advanced solution designed to enable more intelligent and automated manufacturing operations. The platform enables AI-based quality inspection, enhanced traceability, improved operational visibility and optimised decision-making across manufacturing operations. Key capabilities include real-time dashboards, visual analytics, AI-driven insights, and operational monitoring across fleet, logistics, and infrastructure functions.

Jasim Alawadi, CICTO at du, said, "du’s partnership with AGPC represents our commitment to driving the UAE's industrial evolution through technology that delivers tangible outcomes. We are reimagining how manufacturing operates in service of the UAE's vision for economic diversification and technological sovereignty. Combining our expertise in digital infrastructure and AI deployment with Al Gharbia's deep understanding of manufacturing excellence, we aim to create solutions that will define the future of intelligent industry in our region."

Noritsugu Mifune, CEO of AGPC, said: "Our collaboration with du Tech is an investment in the technologies that will shape tomorrow's manufacturing landscape. The Industrial AI Vision Platform enables us to achieve new standards in quality inspection and traceability while optimising our operations in ways that were previously difficult to achieve at scale. Together, we are demonstrating that UAE-based partnerships can lead the world in industrial innovation."

Through the deployment of sovereign AI infrastructure and locally developed solutions, the collaboration supports the UAE's local manufacturing ambitions while establishing new benchmarks for operational excellence in the manufacturing sector.

Geopolitics and supply chain are the main concerns for the oil and gas industry this year. (Image source: Adobe Stock)

Geopolitics and supply chain disruptions arising from the US/Iran conflict and the Strait of Hormuz blockade are the key themes impacting the oil and gas industry in 2026, according to GlobalData’s Strategic Intelligence report, “Top 20 Oil & Gas Themes - 2026”

The report identifies the top 20 themes that will impact the oil and gas industry in 2026, with geopolitics topping the list. It also notes that US tariffs might continue to weigh on the global economy, despite a slight easing of these worries in the recent past. It is therefore important for the industry to assess the impact of these macroeconomic themes while charting out their growth plans, says GlobalData, a leading intelligence and productivity platform.

Ravindra Puranik, Oil and Gas Analyst at GlobalData, commented, “The renewed conflict in the Middle East has led to a spike in oil and gas prices and has throttled maritime traffic through the Strait of Hormuz. This has severely disrupted energy supplies through the Persian Gulf, with oil prices spiking to around 44% above their pre-war levels in March 2026. Countries have reacted with a mix of emergency fiscal measures, supply rationing, and a pivot to alternative fuels. However, it remains unclear whether these efforts will be enough to meet energy needs, as it could take months to re-establish steady export volumes through this choke point.”

Although the US and Iran have recently reached a ceasefire, the failure to achieve a permanent end to this conflict will keep the region on edge. The severity of the impact will depend on the full extent of damage sustained to oil and gas facilities across the Middle East. It will likely prove an inflection point for key countries, starting with the Middle East itself, which has seen its energy exports drop and expat workers flee. Although the global economy is now relatively less dependent on Middle Eastern energy than in the past, it still contributes considerable volumes of crude oil, natural gas, and petroleum fuels to global markets.

Energy transition themes, such as renewable energy, hydrogen, carbon capture and storage (CCS), biofuels, and electric vehicles (EV) are also discussed in the report, as are core oil and gas themes, namely LNG  and shale that continue to feature prominently in the capital plans of top oil and gas companies. Lastly. the report also highlights disruptive tech themes, such as artificial intelligence (AI), blockchain, cybersecurity, the Internet of Things (IoT), and robotics.