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OIC Economies

Saudi Aramco posts 33% profit as war drives oil prices higher


Saudi Aramco reported a 33% rise in second-quarter net income to $33.4 billion, as the Middle East war pushed oil prices sharply higher and the company rerouted exports to offset severe disruptions to its main shipping lanes.

The state-owned energy company produced the equivalent of 9.5 million barrels of oil per day in the April-to-June period, down from 12.6 million barrels in the previous quarter, following Iran's effective closure of the Strait of Hormuz. However, it sold that oil at an average of $108 per barrel, up from around $77 per barrel in the first quarter, lifting overall earnings well above the $25.2 billion recorded in the same period last year.

"The past months have been one of the most challenging ever in the history of Saudi Aramco," said chief executive Amin Nasser, adding that Houthi attacks on Red Sea shipping had so far had "no material impact" on the company's capabilities, though "continued disruptions" to regional shipping could damage the broader global economy.

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tags:

GCC
Saudi Arabia
Oil Prices
Author Profile Image
Muhammad Ali Bandial