Aramco’s Q2 profit jumps 44% with Yanbu pipeline offsetting Hormuz disruption
Saudi Aramco reported a 44% jump in its second-quarter profit, posting a net income of $32.69 billion. This is up from $22.67 billion a year earlier and slightly higher than the $32.54 billion recorded in the first quarter.
However, adjusted net income stood at $33.4 billion, up 33% year on year but 0.6% lower sequentially. Earnings for the first half of 2026 was recorded at $67.2 billion. The board also declared a second-quarter base dividend of $21.9 billion, payable in the third quarter.
Cushioning the impact of the Hormuz closure
The results highlight the company’s ability to withstand one of the most significant disruptions to Gulf oil flows in decades, after the conflict severely restricted shipments through the Strait of Hormuz from March.
To overcome this, the company bypassed the Strait of Hormuz by utilising the East-West pipeline to transport oil through its western terminals of Yanbu and Jizan.
“Aramco’s first half performance in 2026 has been defined by the remarkable resilience of our people and the agility of our business and operations to withstand and respond to rapidly changing market conditions,” said Amin H. Nasser, President and CEO of Aramco.
“Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by capitalising on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West Pipeline, storage capacity, and export terminals. That enabled us to sustain production and exports while advancing key projects, despite the challenging regional environment.”
Maintaining oil flows
Meanwhile, Aramco’s storage capacity and network of export terminals also helped maintain supplies to customers during the disruption. Ziad T. Al-Murshed, Executive Vice President & CFO of Aramco, said that the company’s strategic domestic and international infrastructure provided flexibility and optionality.
“Our resilience stems from decades of long-term planning and our strategic domestic and international infrastructure that provide flexibility and optionality. This positioning supports our ability to deliver strong results even in a complex environment, allowing us to increase adjusted net income by 33% compared to the previous year.”
Higher oil prices boost earnings
Aramco’s realised crude oil price rose 62% year on year during the conflict. This increase helped compensate for a sharp reduction in production, with average hydrocarbon output falling to 9.46 million barrels of oil equivalent per day from 12.61 million barrels of oil equivalent per day (boepd) in the first quarter.
Overall, Aramco’s capital expenditure increased to $13.2 billion from $12.3 billion a year earlier, as the company continued investments across its oil and gas portfolio.
Aramco said the Zuluf crude oil increment remains on track for completion this year, while the Fadhili Gas Plant expansion is expected to be completed in 2027. Phase one of the Jafurah Gas Plant maintained steady sales gas production, with phase two procurement and construction continuing towards expected completion next year.
Despite its resilient performance, Nasser warned that global oil inventories remain depleted following months of supply disruption, as around 600 million barrels of commercial inventories have been drawn down since the Middle East conflict began.
