Saudi Aramco's Q1 Net Profit Surpasses Expectations Amid Oil Price Surge

Saudi Aramco reported an adjusted net profit of nearly 126 billion riyals (approximately $33.6 billion) for the first quarter, marking a 26% year-on-year increase, according to Jin10. This figure exceeded analysts' expectations of 109 billion riyals. The profit growth was largely driven by a significant rise in oil prices in March. Following the obstruction of the Strait of Hormuz due to the U.S.-Israel-Iran conflict, the international benchmark Brent crude oil price surged by over 43% that month. Despite the blockade of this critical global energy shipping route, which hindered Saudi Arabia's oil transport, Saudi Aramco swiftly redirected some exports to alternative ports on the Red Sea within days of the conflict's outbreak. Additionally, Saudi Aramco announced that its East-West pipeline is operating at full capacity, with a transport capacity of 7 million barrels per day. This pipeline has helped mitigate the impact of the global energy shock.