Saudi Arabia’s national oil company Aramco announced a significant 25% increase in first-quarter earnings on Sunday, demonstrating strong performance despite ongoing tensions between the U.S. and Iran that have disrupted shipping through the strategically important Strait of Hormuz.
The world’s largest oil exporter generated $32.5 billion in net income during the first three months of the year, surpassing analyst predictions of $30.95 billion according to LSEG estimates.
Company revenues climbed nearly 7% compared to the same period last year, reaching $115.49 billion thanks to increased oil prices and higher sales volumes of both crude oil and processed petroleum products.
Iran’s interference with shipping traffic through the vital Hormuz strait during the ongoing U.S.-Israeli conflict has disrupted energy deliveries and driven up global oil prices, leading Aramco to maximize crude oil transport from its eastern facilities to the Red Sea terminal at Yanbu.
Company CEO Amin Nasser emphasized the importance of maintaining steady energy flows 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,” Nasser stated, adding that “reliable energy supply is critical.”
The cross-country pipeline delivers approximately 2 million barrels daily to domestic refineries on Saudi Arabia’s western coast, while the remaining 5 million barrels are available for international export.
Following Iran’s blockade of the Hormuz waterway, which previously handled one-fifth of global oil shipments, Saudi Arabia reduced production by 2 million barrels per day. The pipeline primarily transports Arab Light crude and some Arab Extra Light varieties, while heavier oil grades have been reduced.
Aramco’s adjusted quarterly earnings reached $33.6 billion, exceeding the company’s median analyst forecast of $31.16 billion. This adjusted figure excludes $1.06 billion in non-operational accounting adjustments.
Investment spending decreased modestly to $12.1 billion during the quarter from $12.5 billion in the previous year, representing a substantial drop from the $13.4 billion spent in the fourth quarter. The company has projected capital expenditures of $50-55 billion for the full year.
Aramco announced a first-quarter base dividend payment of $21.9 billion, representing a 3.5% increase from the previous year and scheduled for distribution in the second quarter, aligning with projected total dividend payments of $87.6 billion for 2026. The company also implemented a performance-based dividend program in 2023 tied to free cash flow generation.
The Saudi government depends significantly on Aramco’s dividend distributions to finance public expenditures and address budget shortfalls. The state maintains direct ownership of nearly 81.5% of the company, while the Public Investment Fund controls 16%.
Free cash flow declined to $18.6 billion from $19.2 billion in the prior year, affected by a $15.8 billion increase in working capital requirements. The company’s debt-to-equity ratio increased to 4.8% as of March 31, up from 3.8% at the end of 2025.
