Aramco Q1 Profit Surges 25% as East-West Pipeline Hits Full Capacity Amid Hormuz Crisis

TLDR:

• Aramco’s Q1 net profit rose 25% to $32.5B, beating the LSEG consensus estimate of $30.95 billion.
• The East-West Pipeline reached 7.0M bpd capacity, offsetting Hormuz shipping disruptions during the conflict.
• Total revenue climbed nearly 7% to $115.49B on higher crude oil and refined product prices and volumes.
• Aramco’s base dividend rose 3.5% to $21.9B, aligning with projected full-year payouts of $87.6 billion.

Saudi Aramco posted a 25% rise in first-quarter profit for 2026, driven by higher oil sales and surging energy prices. The state oil giant earned $32.5 billion in net profit, beating analyst estimates.

Geopolitical tensions around the Strait of Hormuz have reshaped global energy flows. As a result, Aramco’s East-West Pipeline is now running at full capacity to keep supply moving.

East-West Pipeline Steps Up Amid Hormuz Disruption

Iran’s blockade of the Strait of Hormuz, triggered by the ongoing U.S.-Israeli conflict, sharply curtailed global energy shipping.

In response, Aramco ramped up crude flows through its East-West Pipeline from the east coast to Yanbu on the Red Sea.

The pipeline reached its maximum capacity of 7.0 million barrels per day. This move helped cushion the blow to global supply chains.

CEO Amin Nasser pointed to the pipeline’s role during the crisis. “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,” he said.

Nasser further stressed that “reliable energy supply is critical” in the current environment. His comments came as energy markets remained on edge over the Hormuz situation.

The pipeline supplies around 2 million barrels per day to refineries on Saudi Arabia’s west coast. The remaining 5 million barrels per day are available for export.

Saudi Arabia also cut output by 2 million barrels per day after Iran blocked the Hormuz waterway. The strait previously carried a fifth of the world’s total oil supply.

The pipeline mainly carries Arab Light and some Arab Extra Light crude grades. Heavier grades have faced curtailment during the conflict.

Total revenue for the quarter climbed nearly 7% year-on-year to $115.49 billion. Both crude oil and refined and chemical products recorded higher prices and volumes sold.

Dividends Rise as Free Cash Flow Softens

Aramco declared a first-quarter base dividend of $21.9 billion, up 3.5% compared to the same period last year. This payout is in line with the company’s projected total dividends of $87.6 billion for 2026.

The Saudi government depends heavily on these payouts to fund public spending and close budget gaps. The state directly owns about 81.5% of the company, while the Public Investment Fund holds 16%.

The adjusted quarterly net profit stood at $33.6 billion, beating the company-provided analyst estimate of $31.16 billion. This figure excludes $1.06 billion in non-operational accounting items.

The reported net profit of $32.5 billion also beat the LSEG consensus estimate of $30.95 billion. Both figures point to a strong earnings performance for the quarter.

Free cash flow, however, eased to $18.6 billion from $19.2 billion a year earlier. A $15.8 billion rise in working capital weighed on that figure. Aramco’s gearing ratio also moved up to 4.8% at the end of March from 3.8% at end-2025.

Capital expenditure fell to $12.1 billion from $12.5 billion in the prior-year quarter. Aramco had earlier outlined $50–55 billion in total capital expenditure for 2026.

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