Aramco CEO Signals Extended Disruption in Oil Markets Amid Record Profit Growth

Saudi Aramco's CEO Warns of Prolonged Disruption to Oil Markets

Saudi Aramco's Chief Executive Officer, Amin Nasser, has warned of a long disruption to oil markets from the near closure of the Strait of Hormuz. The company reported a significant jump in profit, however, following higher prices and its ability to redirect exports via a pipeline bypassing the vital waterway.

The conflict in the Middle East, now in its third month, has thrown markets into disarray with traffic through Hormuz remaining at a near standstill and oil prices hovering close to $100 a barrel. The hostilities have deepened the risk for the oil market, with the US and Iran showing little progress in negotiations aimed at opening flows.

Despite the challenges, Aramco reported a 26% increase in first-quarter adjusted net income, which came in at 126 billion riyals, beating analysts' expectations. The company maintained its dividend payout, which is crucial for the Saudi economy. Aramco sold higher volumes of crude, refined fuels, and chemical products compared with a year earlier.

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The company's ability to redirect exports via an alternative port on the Red Sea has helped mitigate some of the impact of the conflict. However, the volumes being sold through the alternative port of Yanbu are below prewar levels. Aramco's trading unit has also sent some crude shipments through the Strait of Hormuz in recent days, using ships with their transponders turned off to avoid detection.

Aramco's sales of crude oil averaged $76.90 a barrel during the first quarter, compared with $64.10 in the quarter ended December 31, 2025, and $76.30 a year earlier. The company maintained its quarterly dividend at $21.9 billion, after boosting the payout by 3.5% to the current level at the end of last year. Free cash flow came in below the dividend at $18.6 billion in the quarter. The company's gearing ratio, a measure of indebtedness, rose to 4.8% in the quarter from 3.8% at the end of 2025.