Aramco Raises Profit as Production Remains Stable despite Crisis

Saudi Arabian Oil Co (Aramco) on Sunday reported $33.59 billion in net income adjusted for nonrecurring items for the first quarter (Q1), up from the prior three-month period and Q1 2025 on higher oil prices and largely stable production.

The figure represents a 34 percent sequential increase and 26 percent year-on-year increase. Before adjustment, net earnings rose 83 percent quarter-on-quarter and 25 percent year-on-year to $32.54 billion.

Earnings per share for the January-March 2026 quarter stood at $0.13. Aramco declared $21.9 billion in dividends for Q1 2026, up 3.5 percent year-over-year.

"During the quarter, geopolitical developments in the Middle East significantly impacted global energy markets and constrained the flow of supply, increasing crude oil price volatility", the state-owned oil giant said in its quarterly statement.

"Guided by its strong risk management framework and strategic infrastructure built to withstand and adapt to evolving global challenges, the Company rerouted crude oil volumes via the East-West Pipeline to utilize alternative export routes, while also leveraging its domestic and international storage capacity", Aramco explained. The pipeline reached its capacity of 7 million barrels per day in Q1 2026, increasing exports via the Gulf country's west coast.

"This prompt activation of contingency measures reflects Aramco’s operational agility and preparedness, and enabled the Company to deliver strong financial results despite impacts to certain Aramco facilities and ongoing regional instability.

"The impact of these events was not material to Aramco’s financial position, results of operations, or cash flows as of March 31, 2026".

Upstream production averaged 12.61 million barrels of oil equivalent per day (MMboepd), compared to 13.2 MMboepd in Q4 2025 and 12.31 MMboepd in Q1 2025.

The Q1 2026 figure consisted of 10.56 MMbpd of liquids, compared to 11.1 MMbpd in Q4 2025 and 10.3 MMbpd in Q1 2025.

Natural gas output in the first three months of 2026 was 10.51 billion cubic feet per day (Bcfpd), compared to 10.74 Bcfpd in Q4 2025 and 10.25 Bcfpd in Q1 2025.

Aramco's average realized crude price of $76.9 a barrel climbed from $64.1 in Q4 2025 and $76.3 in Q1 2025.

Aramco reported a 96.3 percent supply reliability for its downstream business, compared to 99.9 percent in Q4 2025 and 100 percent in Q1 2025.

Revenue totaled $124.6 billion, up 12 percent quarter-on-quarter. "The [sequential] increase in revenue was mainly due to higher prices of crude oil and refined and chemical products, partially offset by lower volumes sold of refined and chemical products, as well as lower volumes sold of crude oil", Aramco said.

"The increase in other income related to sales was primarily due to higher reference equalization prices, partially offset by higher regulated prices and lower volumes sold of crude oil and refined products at regulated prices".

Year-on-year, revenue increased 9 percent. "The increase [against Q1 2025] in revenue was mainly due to higher prices and volumes sold of refined and chemical products, as well as higher crude oil volumes sold and higher crude oil prices", Aramco said.

Operating costs fell quarter-on-quarter but rose year-on-year to $65.25 billion; production and manufacturing expenses dropped both quarter-on-quarter and year-on-year. Operating profit rose quarter-on-quarter and year-on-year to $59.34 billion. Income before taxation and zakat also rose quarter-on-quarter and year-on-year to $59.22 billion, despite higher zakat and taxes.

Operating activities generated $30.73 billion in net cash, down quarter-on-quarter and year-on-year "mainly due to unfavorable movement in working capital", Aramco said. Lower capital spending partially offset weaker cash generation from operations. Free cash flow in Q1 2026 was $18.64 billion.

Net debt rose quarter-on-quarter but declined year-on-year to $23.68 billion. Aramco's gearing - the ratio of net debt to the total of equity plus net debt, or the degree to which operations are financed by debt - was 4.8 percent.

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