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Saudi Aramco Q1 Profit Up 25% With East–West Pipeline at Capacity

The CEO warns the market may not normalize until 2027.

Overview

  • Saudi Aramco, which reported results Sunday, posted net profit of 120 billion riyals (about $32 billion) and adjusted earnings of $33.6 billion that beat analyst forecasts.
  • The company kept exports flowing by running its East–West pipeline at 7.0 million barrels a day, sending roughly 2 million to west‑coast refineries and about 5 million for export.
  • Aramco said higher crude and refined product prices and increased volumes lifted revenue, with benchmark oil topping $100 a barrel in March after the Strait of Hormuz was curtailed.
  • The board approved a $21.9 billion base dividend for the quarter, while free cash flow of $18.6 billion and a 4.8% gearing ratio showed rising financial strain as working capital grew.
  • The CEO said the pipeline cannot replace lost Hormuz tanker traffic, which once carried about one‑fifth of traded oil, and warned of possible disruption into 2027 if shipping stays constrained.