Saudi Aramco's CEO Shares Q1 Profit Increases

Saudi Aramco has operations spanning production, refining and distribution across multiple continents. 

According to the company, it produced 12.4m barrels of oil equivalent per day in 2024 and operates a net refining capacity of 4.1m barrels per day, making it the world's fourth-largest refiner.

The firm's export routes came under pressure at the end of February when joint US-Israeli strikes on Iran triggered wider conflict across the Middle East. 

Saudi Arabia has not entered the fighting but the Strait of Hormuz, the waterway that carries the majority of Middle Eastern oil and gas exports, has been effectively closed to Saudi shipments.

The closure cut off the country's primary trade route for its largest export commodity.

According to senior executives from major oil companies, an estimated 1bn barrels of oil have been removed from global markets over the past two months. 

The disruption has affected supply chains across Europe and Asia, where Saudi crude typically accounts for a substantial portion of import volumes.

Aramco has now reported a 25% increase in profits for the first quarter of 2026 despite the disruption.

Pipeline capacity reaches maximum

The company has redirected crude oil through its East-West Pipeline to maintain exports during the closure of Gulf ports. 

The infrastructure connects eastern operations to the Red Sea port of Yanbu, bypassing the Strait of Hormuz entirely. The pipeline system, which spans approximately 1,200 kilometres across Saudi Arabia, was originally constructed to provide strategic export flexibility.

Amin Nasser, President and CEO of Aramco, addressed the pipeline's role during the firm's first quarter earnings call. 

He said: "Our East-West Pipeline, which reached its maximum capacity of seven 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 and providing relief to customers affected by shipping constraints in the Strait of Hormuz.”

The pipeline now operates at full capacity. According to Aramco, the company produced 11.1m barrels of oil per day in the fourth quarter of 2025.

The pipeline cannot compensate for the full volume of exports that previously moved through the Strait of Hormuz.

First quarter earnings show growth

Aramco reported net income of US$32.5bn for the year ending 31 March, an increase of around 25% compared to the same period in 2025. The results exceeded analyst expectations given the scale of export disruption.

Oil moved through the East-West Pipeline has sold at elevated prices due to global supply constraints. According to market data, Brent crude currently trades above US$100 per barrel, approximately 40% higher than levels before the conflict began in late February.

Amin described the limits of the company's response in an emailed statement. "If trade flows resume immediately or today through the Strait of Hormuz, it will take a few months for the oil market to rebalance," he says.

"But if trade and shipping remain curtailed by more than a few weeks from today, we anticipate the supply disruption to persist and the market to normalise only in 2027," he adds.

Infrastructure constraints become apparent

The crisis has exposed limitations in global energy infrastructure that Aramco's leadership has highlighted publicly. According to the company, years of underinvestment have left markets with reduced flexibility to manage supply shocks.

Existing stockpiles are preventing immediate shortages but traders and shipping companies are monitoring for signs of prolonged disruption. 

Insurers have applied high risk premiums to vessels entering the affected area, increasing commercial shipping costs that could filter through to end users.

Amin says the situation validated longstanding company arguments about energy security, explaining: "Recent events have clearly demonstrated the vital contribution of oil and gas to energy security and the global economy, and are a stark reminder that reliable energy supply is critical.

"Despite these headwinds, Aramco remains focused on its strategic priorities and is leveraging both its domestic infrastructure and its global network to navigate disruption," he adds.

The company has maintained regular communication with major customers in Asia and Europe to coordinate delivery schedules through alternative routes.

Market conditions remain uncertain

Brent crude prices remain above US$100 per barrel with no clear timeline for conflict resolution. 

The removal of 1bn barrels from global markets over two months has created supply pressure that existing infrastructure cannot fully address.

The company continues to operate the East-West Pipeline at maximum capacity while monitoring conditions in the Strait of Hormuz. 

Aramco has maintained its operational response to the closure of the Strait of Hormuz through the use of alternative export routes.