To add quotes for Nasser, details, and background

From Youssef Saba

DUBAI, May 10 (Reuters) - Saudi Aramco, the world's largest oil company, said on Sunday that its first-quarter net profit rose 25 percent, mainly due to higher sales as pumping through its East-West pipeline, which bypasses the Strait of Hormuz, reached full capacity.

Aramco, the world's largest oil exporter, announced net profits of $32.5 billion for the three months ending March 31, exceeding the London Stock Exchange Group's estimate of $30.95 billion.

Total revenues increased seven percent compared to the same period of the previous year to $115.49 billion, due to higher prices and sales volumes of crude oil, refined products and chemicals.

Iran kept the Strait of Hormuz effectively closed after the war began, disrupting energy supplies and causing a sharp rise in oil prices. This prompted Aramco to increase crude flows from a key production hub on its east coast to the Red Sea port of Yanbu.

Nasser: Reliable energy supplies

Aramco CEO Amin Nasser said the results reflect "strong operational resilience and great adaptability in a complex geopolitical environment."

Al-Nasser added in a statement announcing the company's results, "The East-West pipeline, which is now operating at its maximum capacity of seven million barrels of oil per day, has proven to be a vital artery to ensure the continued supply of oil and other products to markets, as it has helped to mitigate the effects of the global energy shock and has contributed to providing support to customers affected by shipping restrictions in the Strait of Hormuz."

He continued, "Recent events have clearly demonstrated the vital contribution of oil and gas to global energy security and the economy, and this serves as a stark reminder of the importance of having a reliable energy supply."

The East-West pipeline can supply refineries on Saudi Arabia’s west coast with about 2 million barrels per day of oil, leaving 5 million barrels per day for export.

During the war, Saudi Arabia reduced production by two million barrels per day after the Strait of Hormuz was closed. The pipeline carries Arab Light and Arab Extra Light crude, which limited the volume of heavier crudes.

Adjusted net income for the first quarter was $33.6 billion, exceeding the average estimate of 13 analysts from the firm, which was $31.16 billion.

This figure excludes non-operating accounting items of $1.06 billion, mainly related to changes in inventory replacement costs and some financing expenses.

Capital expenditures fell slightly to $12.1 billion during the quarter, compared to $12.5 billion in the same period last year, and a sharp decrease from $13.4 billion in the fourth quarter. Aramco projected capital spending of between $50 billion and $55 billion this year.

Increased dividend payouts

Aramco announced a basic dividend of SAR 82.1 billion (USD 21.9 billion) for the first quarter of 2026, representing a 3.5% year-on-year increase, to be paid in the second quarter. This is in line with expectations of total cash dividends of USD 87.6 billion for 2026.

In 2023, the company introduced the issue of performance-related cash dividends, based on free cash flow.

Aramco’s statement said free cash flow was 69.9 billion riyals ($18.6 billion), down from 71.8 billion riyals ($19.2 billion) in the same quarter of the previous year, “affected by an increase in working capital of 59.1 billion riyals ($15.8 billion).”

The statement indicated that the debt ratio reached 4.8 percent as of March 31, 2026, compared to 3.8 percent at the end of 2025.