Saudi Aramco, the world's largest oil-producing company, reported a 25 per cent annual rise in first-quarter net profit, with the East-West pipeline offsetting war-related capacity disruption.
Net profit for the three months to the end of March rose to 120 billion Saudi riyals ($32 billion), up from 95.68 billion riyals that the company reported in the same period a year earlier, it said in a filing on Sunday to the Tadawul stock exchange, where its shares trade.
The annual increase was “mainly driven by higher revenue and other income related to sales, partially offset by higher operating costs and an increase in income taxes and zakat”, it said.
Total revenue for the first quarter reached 433.10 billion riyals, up from 405.65 billion riyals in the same period last year, mainly due to higher prices and volumes sold of both crude oil and refined and chemical products, the company said.
“Aramco’s first-quarter performance reflects strong resilience and operational flexibility in a complex geopolitical environment,” said Aramco president and chief executive Amin Nasser.
Following the effective closure of the Strait of Hormuz by Iran after the start of the war on February 28, Saudi Arabia shifted exports to its west coast.
The East-West pipeline has reached its maximum capacity of 7 million barrels of oil per day, Mr Nasser said. It 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 said.
“Despite these headwinds, Aramco remains focused on its strategic priorities and is leveraging both its domestic infrastructure and its global network to navigate disruption.”
