Aramco's Profits Jump 26% in Q1 2026, Surpassing Expectations

SadaNews - Saudi Aramco's profits grew beyond analysts' expectations in the first quarter of 2026, supported by rising oil prices and the company's ability to continue exports despite disruption of shipping traffic through the Strait of Hormuz due to the Iran war.

The company announced in a disclosure on "Tadawul" today, Sunday, that net profit attributable to shareholders reached around 120.1 billion riyals, a 26% annual increase, surpassing Bloomberg's average forecast of 111.6 billion riyals. This marks the strongest quarterly performance since Q3 2023. The adjusted net profit stood at 125.97 billion riyals. Meanwhile, revenues for the same period amounted to 433.1 billion riyals, a 7% increase from the first quarter of last year.

The results reflect the significant rise in average oil prices during March, following the war which disrupted energy supplies through the Strait of Hormuz, where more than 20% of the world's seaborne oil transits. Aramco managed to counter the disruptions by diverting some Saudi exports through the "East-West" pipeline to the port of Yanbu on the Red Sea.

Read also: Aramco's CEO warns: The oil market will not recover quickly from the Hormuz shock
Geopolitical disruptions led to a significant rise in Brent crude prices, which soared to nearly $120 per barrel during the peak of tensions in March, averaging $98.2, compared to $69.2 in February and $64.6 in January, before the April average rose to $101.4 per barrel. Aramco also raised the premium for "Arab Light" crude heading to Asia for May shipments to $19.50 above the reference price, one of the highest recorded premiums historically.

Saudi Oil Revenues

Analysts expect oil prices to remain above pre-war levels throughout this year, even if shipping traffic through the Strait of Hormuz resumes, which may positively reflect on Aramco's results and Saudi budget revenues. It is noteworthy that the company’s board announced today cash dividends for its shareholders for Q1 2026 at a rate of 0.33 riyals per share, totaling 82.1 billion riyals.

Saudi stock market strengthened its hold above an important technical threshold, supported by positive results from "Aramco", amid expectations of an Iranian response to a U.S. proposal to end the conflict in the region. The general index "TASI" rose 0.5% to 11084 points, bolstered by the rise of leading companies' stocks reporting their results today, like "Aramco" and "Aqua".

It is worth noting that oil revenues in the Saudi budget decreased by 3% in Q1 2026, amounting to about 145 billion riyals, recording its lowest level since Q2 2021, putting pressure on total revenues which declined by 1% year-on-year, while non-oil revenue growth helped mitigate the impact of the oil decline.

This came alongside a cautious production policy from "OPEC+", as the alliance kept production levels unchanged during Q1 before deciding in April to increase production by 206,000 barrels per day, maintaining the same quantity in May, before adjusting the increase to 188,000 barrels starting from June.

"East-West" Pipeline Mitigated Global Energy Shock

Amin Nasser, President and CEO of Saudi Aramco, stated that the company’s performance in Q1 "reflects the strength of its operational resilience and its ability to adapt to the complex geopolitical environment." He added that operating the "East-West" pipeline at its maximum capacity of 7 million barrels per day "confirmed its vital role in maintaining oil supplies to the markets, contributing to mitigating the global energy shock and supporting customers affected by shipping restrictions through the Strait of Hormuz."

Nasser emphasized that recent developments "highlight the critical importance of oil and gas in supporting the global economy and energy security, confirming the importance of providing reliable supplies." He noted that Aramco "continues to focus on its strategic priorities despite the challenges and disruptions, leveraging its global network and infrastructure."