Aramco Sees 25% Profit Increase in Q1 as East-West Pipeline Reaches Full Capacity, Mitigating Hormuz Threats

Saudi Aramco announced a 25% increase in net profit for the first quarter on Sunday, May 10, bolstered by heightened sales and enhanced operational efficiency. The company confirmed its East-West crude pipeline has achieved full capacity, which strengthens export stability amidst uncertainties in the Strait of Hormuz.

The largest oil exporter globally reported a net profit of $32.5 billion for the quarter ending March 31, surpassing the LSEG consensus estimate of $30.95 billion. Total revenue increased by 11.4% sequentially, reaching $115.49 billion.

Adjusted net income for Q1 2026 was $33.6 billion, compared to $26.6 billion the previous year. Cash flow from operating activities amounted to $30.7 billion, showing a slight decline from $31.7 billion in Q1 2025, while free cash flow was $18.6 billion, down from $19.2 billion last year, affected by a $15.8 billion increase in working capital.
The company reported a gearing ratio of 4.8% as of March 31, 2026, up from 3.8% at the end of 2025, indicating a minor rise in leverage.

Capital expenditures for the quarter were $12.1 billion, aimed at supporting long-term growth goals and expanding upstream infrastructure. The board also declared a base dividend of $21.9 billion for Q1 2026, a 3.5% increase year-on-year, to be disbursed in the second quarter.

A notable aspect of the quarter was the East-West Pipeline, which has been pushed to its full capacity of 7.0 million barrels per day, facilitating crude exports from Saudi Arabia’s west coast and diminishing dependence on the Strait of Hormuz route.

Aramco President and CEO Amin H Nasser stated that the outcomes demonstrate strong operational resilience amid a complex global landscape.

He emphasized that the East-West Pipeline has “established itself as a vital supply line,” aiding in the mitigation of disruption risks and alleviating pressures on customers impacted by shipping limitations in the Strait of Hormuz.

Nasser remarked that recent global events highlight the necessity of a dependable energy supply, branding oil and gas as “essential” to energy security and the global economy.

“Despite these challenges, Aramco remains committed to its strategic priorities, leveraging both domestic infrastructure and a global network to manage disruptions,” he noted, acknowledging the company’s workforce for their “remarkable professionalism, determination, and expertise.”

Aramco also pointed out that its domestic and international storage capacity offers additional supply flexibility. Ongoing strategic investments in critical infrastructure and contingency planning have been crucial in ensuring operational continuity and lessening disruption risks.