Saudi Aramco has reported stronger-than-expected financial results for the first quarter of 2026, posting a sharp rise in profit as the company maximised the use of its East-West pipeline to counter disruptions caused by tensions in the Gulf region.
The state-owned oil giant announced a net profit of $32.5 billion for the quarter ending March 31, representing a 25 per cent increase compared to the same period last year. The figure exceeded analysts’ expectations of about $30.95 billion.
Aramco’s total revenue also climbed by nearly seven per cent year-on-year to $115.49 billion, driven by stronger crude oil prices and higher sales volumes across its petroleum, refining, and petrochemical operations.
The company’s performance comes amid ongoing instability linked to the blockade of the Strait of Hormuz, one of the world’s most important oil transit corridors. The restrictions have forced Saudi Arabia to rely heavily on alternative export infrastructure.
To maintain uninterrupted crude exports, Aramco increased operations through its East-West pipeline network, which transports oil from the eastern region of Saudi Arabia to the Red Sea port city of Yanbu.
Chief Executive Officer Amin Nasser said the pipeline reached its maximum transport capacity of seven million barrels of oil per day during the period, helping the company minimise the impact of disruptions in global energy markets.
According to the company, roughly five million barrels per day from the pipeline system are currently available for export after meeting domestic refinery demand.
Despite regional tensions and a reduction in production output estimated at two million barrels per day, Aramco said it successfully maintained supply stability by prioritising lighter crude exports through inland transport systems.
The oil producer also reaffirmed its importance to Saudi Arabia’s economy through significant shareholder returns. Aramco declared a first-quarter base dividend of $21.9 billion, reflecting a 3.5 per cent increase from the previous year. The company expects total dividend payments for 2026 to reach approximately $87.6 billion.
Although free cash flow declined slightly to $18.6 billion due to increased working capital requirements, the company maintained a relatively low gearing ratio of 4.8 per cent, indicating strong financial stability.
Capital expenditure for the quarter stood at $12.1 billion, slightly lower than the corresponding period last year. However, the company maintained its full-year investment projection of between $50 billion and $55 billion as it continues to expand infrastructure and production capacity.
Saudi Arabia’s government and the Public Investment Fund together control about 97.5 per cent of Aramco’s shares, making the company’s dividend payments a major source of funding for national development programmes and economic diversification efforts.
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