DUBAI (Beyond Time News): Saudi Aramco reported a strong performance in the first quarter of the year, with profit rising 25% as global energy markets reacted to heightened geopolitical tensions around the Strait of Hormuz.
Strong Earnings Driven by Higher Oil Prices
Aramco posted a net profit of $32.5 billion for the quarter ending March 31, beating analyst expectations of $30.95 billion. Revenue also climbed nearly 7% year-on-year to $115.49 billion, supported by higher crude prices and stronger sales of refined and chemical products.
According to Beyond Time News, the results highlight the company’s ability to stay resilient during global supply disruptions.
Pipeline Capacity Reaches Full Output
CEO Amin Nasser said the company’s East-West Pipeline played a key role in stabilizing supply flows during market uncertainty. The pipeline reached its full capacity of 7 million barrels per day, helping offset disruptions linked to tensions in the Strait of Hormuz.
He added that reliable energy supply remains critical in maintaining global market stability.
The pipeline allows around 2 million barrels per day to be sent to refineries on Saudi Arabia’s west coast, while the remaining capacity supports exports.
Regional Tensions Impact Energy Flows
Oil markets faced pressure after disruptions in the Strait of Hormuz, a key route that previously handled nearly one-fifth of global oil shipments. In response, Saudi Arabia adjusted its supply strategy and increased reliance on alternative routes, including the Red Sea corridor via Yanbu.
Read more:US–Iran Standoff Continues as Calm Returns to Strait of Hormuz Amid Tensions
Dividend and Financial Position
Aramco declared a first-quarter base dividend of $21.9 billion, marking a 3.5% increase compared to last year. The payment is scheduled for the second quarter.
The company also reported a slight decline in free cash flow to $18.6 billion, compared to $19.2 billion a year earlier. Capital spending dropped to $12.1 billion during the quarter.
Meanwhile, Aramco’s gearing ratio rose slightly to 4.8% at the end of March.
Outlook
Aramco continues to play a central role in global energy supply, especially during periods of geopolitical uncertainty. According to Beyond Time News, the company’s strong earnings and full pipeline utilization reflect both market demand and strategic flexibility in managing global oil flows.
