Saudi Aramco reported a sharp increase in second-quarter profit on Tuesday, beating analyst expectations as elevated oil prices and refining margins during the U.S.-Iran conflict offset lower sales volumes, and underscored the resilience of Saudi Arabia’s export infrastructure amid one of the biggest supply disruptions in oil market history.
The world’s largest oil producer posted adjusted net income of 125.2 billion Saudi riyals ($33.4 billion) for the three months ended June, a 33% increase from a year earlier and ahead of analysts’ expectations of $31.59 billion.
The strong earnings extend a wave of exceptional quarterly results across the global energy industry, with major producers benefiting from a surge in crude prices following more than five months of conflict between the United States and Iran that has disrupted energy flows across the Middle East.
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East-West Pipeline Keeps Exports Flowing
A key factor behind Aramco’s performance was its ability to maintain exports despite repeated disruptions in the Strait of Hormuz, the world’s most important oil shipping corridor.
The company said it continued to rely on its 1,200-kilometer (746-mile) East-West Pipeline, which transports crude from Saudi Arabia’s eastern oil fields to export terminals on the Red Sea, allowing shipments to bypass the Strait of Hormuz.
The pipeline enabled Aramco to sustain exports at a maximum capacity of 7 million barrels per day, preserving supply to international customers even as attacks on commercial shipping and military tensions disrupted traffic through the Gulf.
“Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by capitalizing on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West Pipeline, storage capacity, and export terminals,” President and CEO Amin H. Nasser said.
“That enabled us to sustain production and exports while advancing key projects, despite the challenging regional environment.”
Aramco said stronger crude oil, refined product and petrochemical prices were the primary drivers of revenue growth during the quarter. Those gains were partly offset by lower sales volumes of crude oil and refined products, reflecting production disruptions and tighter global supplies.
Elevated commodity prices have more than compensated major producers for lower output during the conflict, allowing profitability to improve even as physical exports remain below normal levels. Cash flow from operating activities reached $25.4 billion during the quarter, providing continued financial flexibility despite the volatile operating environment.
The company also reported its gearing ratio increased to 6.2% at the end of June from 4.8% three months earlier. Aramco’s board approved a second-quarter base dividend of $21.9 billion, cementing its position as one of the world’s largest dividend-paying companies.
Speaking during a conference call with analysts, Nasser warned that the conflict has created what he described as the largest supply disruption ever experienced by the global oil market. According to the chief executive, more than 2.6 billion barrels of oil originally destined for industries including agriculture, automotive manufacturing, semiconductors and chemicals have been removed from global supply chains since the conflict began.
He said Aramco’s pipeline network and strategic inventories have helped reduce the effective supply shortfall to roughly 1.8 billion barrels. Even if shipping through the Strait of Hormuz resumed immediately, Nasser estimated it would take approximately 18 months to replenish depleted global inventories at an average rate of 2.1 million barrels per day.
This suggests that the impact of the conflict could continue to influence oil markets well beyond any eventual ceasefire, with inventory rebuilding likely to support prices over an extended period.
Aramco’s results mirror strong earnings reported by other major oil companies, owing to the sustained increase in energy prices during the Middle East conflict.
In the United States, Exxon Mobil reported second-quarter profit of $14.5 billion, more than double the level recorded a year earlier.
Chevron posted earnings of $12 billion, nearly four times higher than the $2.5 billion earned in the corresponding period last year.
The exceptional profitability across the sector was spurred by higher benchmark crude prices, wider refining margins and elevated trading opportunities created by volatile energy markets.
Trump Criticizes Oil Industry Profits
The strong financial performance has drawn criticism from President Donald Trump, who accused U.S. oil producers of benefiting excessively from higher fuel prices.
“They’re making too much money based on a shortage,” Trump told reporters at the White House on Monday.
“I don’t like it.”
This reveals growing political sensitivity around energy prices, particularly as elevated gasoline costs continue to influence inflation and household spending. Trump has repeatedly called for lower fuel prices while simultaneously urging producers to maintain adequate supplies during the geopolitical crisis.