Boosted by war-driven oil price increases offsetting export pressures, Saudi Aramco's first-quarter profits rise significantly

Glonghui, May 10 — Saudi Aramco announced on Sunday that its first quarter adjusted net profit was nearly 126 billion riyals (equivalent to $33.6 billion), up 26% year-on-year, surpassing analysts’ expectations of 109 billion riyals. This profit increase benefited from a significant surge in oil prices in March. After the United States and Israel launched strikes, Iran effectively closed the Strait of Hormuz, causing the international benchmark Brent oil price to rise by more than 43% that month. Despite this blockade of the world’s most important energy shipping route, which hindered the transportation of a large volume of Saudi crude oil, Saudi Aramco began shifting some export shipments to Red Sea alternative ports within days of the outbreak of conflict. In recent weeks, international oil prices have reached a four-year high and have remained steadily above $100 per barrel. With the escalating geopolitical tensions in the Strait of Hormuz, the International Energy Agency said this has led to the most severe crude oil supply disruption in history. Affected by attacks on oil fields, storage capacity saturation and other factors, Persian Gulf countries such as Saudi Arabia, the United Arab Emirates, Kuwait, and Iraq have also been forced to reduce crude oil production.