Abu Dhabi, United Arab Emirates – Saudi Aramco delivered stronger-than-expected first-quarter results, underscoring the company’s operational resilience and ability to execute under pressure amid ongoing disruption in the Strait of Hormuz.

Adjusted net income rose 26% year-on-year to USD$33.6 billion, significantly ahead of analyst expectations of USD$26.6 billion. The performance was supported by higher crude realisations, which increased from USD$64.10 per barrel in Q4 to USD$76.90 in Q1.

The results come as Aramco continues to navigate one of the most significant supply disruptions facing global energy markets. Following the effective closure of the Strait of Hormuz, the company rapidly rerouted exports through its East-West Pipeline, which connects its oil fields directly to the Red Sea. Aramco increased utilisation of the pipeline to its maximum capacity of 7 million barrels per day, restoring exports to around 60% of pre-conflict levels by the end of March.

Commenting on the results, Josh Gilbert, Market Analyst at eToro, said:“Aramco’s Q1 results gave investors a look into a business with operational excellence. The profit beat is the headline grab, but it’s how it got there that makes it more significant, particularly how quickly the company adapted when the Strait of Hormuz effectively closed and remained shut.

“Within days of the Strait closing, Aramco rerouted exports through the East-West Pipeline and executed contingency planning at scale. This is a business that was at the centre of the crisis but still delivered operationally, and it’s exactly why investors have confidence in this business.”

Aramco’s board declared a base dividend of USD$21.9 billion, up 3.5% year-on-year, giving the company a trailing 12-month dividend yield of 4.9%, the highest among the world’s major oil companies.

However, free cash flow came in at USD$18.6 billion, below the dividend payout, reflecting a one-off working capital build linked to the pipeline ramp-up.

Gilbert added: “The market will undoubtedly like the profit beat and the operational resilience, but there are still risks ahead. CEO Amin Nasser noted that even if the Strait reopens immediately, it could still take months for the market to rebalance. If disruption continues for several more weeks, normalisation may not happen until 2027.

“That creates a double-edged sword for Aramco. Higher oil prices are clearly supporting earnings, as these results show, but export volumes remain materially constrained. The company has demonstrated resilience, but the broader crisis is far from over.”

Oil prices climbed back above USD$104 following renewed setbacks in peace talks, adding further uncertainty to global energy markets and supply expectations.

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