Saudi Aramco reported a $33.4 billion profit for the second quarter, citing higher oil prices amid regional conflict and the use of its East-West pipeline to bypass the Strait of Hormuz.

Saudi Aramco reported an adjusted net income of 125.2 billion Saudi riyal, or $33.4 billion, for the second quarter of the year. This represents a 33% increase compared to the same period last year and exceeds analyst expectations of $31.59 billion. The company attributed the growth to higher prices for crude oil and refined products, despite supply disruptions in the Strait of Hormuz caused by the ongoing conflict between the U.S. and Iran.

Operational Strategy and Exports

To maintain exports during the regional hostilities, Aramco leveraged its 1,200-kilometer East-West pipeline to the Red Sea. This infrastructure allows the company to bypass the Strait of Hormuz and sustain exports at a capacity of 7 million barrels per day. Aramco President and CEO Amin H. Nasser stated that the company utilized its diverse asset base and storage capacity to ensure business continuity.

Financial Performance and Dividends

The company reported cash flow from operating activities of $25.4 billion for the quarter. Its gearing ratio reached 6.2% by the end of June, up from 4.8% at the end of the first quarter. Additionally, the board announced a base dividend of $21.9 billion to be paid over the next three months.

Industry Context

Other major oil companies also reported significant profit increases, with Exxon Mobil’s second-quarter profits rising to $14.5 billion and Chevron’s earnings reaching $12 billion. U.S. President Donald Trump criticized these results, stating that oil majors are making excessive profits due to fuel shortages and calling for lower prices at the pump.