Saudi Aramco's First Quarter 2026 Performance

Saudi Aramco reported a net income of $32.5 billion for the first quarter of 2026, marking a 25% increase year-on-year. This profit growth was driven by higher oil price realization and the strategic use of the East-West Pipeline to bypass significant crude volumes affected by ongoing disruption at the Strait of Hormuz.

Operational Adjustments and Pipeline Capacity

To support exports via Saudi Arabia's west coast, Aramco ramped up oil supply through the East-West Pipeline to its maximum capacity of 7 million barrels per day during the quarter. The company's chief executive, Amin Nasser, highlighted the pipeline as a "critical supply artery" that helped mitigate the impact of a global energy shock and provided relief to customers facing shipping constraints in the Strait of Hormuz.

Capital Expenditure and Strategic Outlook

Aramco's capital expenditure in the first quarter was $12.1 billion, slightly down from $12.5 billion in the same period of 2025. The company has outlined plans for $50 billion to $55 billion in capital expenditure for the full year. Nasser emphasized the company's "strong resilience and operational flexibility" in a complex geopolitical environment, noting that Aramco remains focused on its strategic priorities by leveraging both domestic infrastructure and its global network to navigate disruption in the Strait.

Market Impact and Stabilization

Nasser stated that the world has lost approximately 1 billion barrels of oil over the past two months due to the Strait of Hormuz disruption. He cautioned that even if flows resume, energy markets will take time to stabilize, as "reopening routes is not the same as normalising a market that has been deprived of about 1 billion barrels of oil."