Saudi Aramco Q1 Profit Rises 26%; East-West Pipeline Reaches 7 Million Barrels Per Day

Saudi Aramco reported a 26 percent year-on-year increase in first-quarter adjusted net income to $33.6 billion. The result exceeded analyst expectations of $31.2 billion and marked a 34 percent rise from the $25.1 billion posted in the previous quarter. The company stated that its East-West pipeline reached full capacity of 7 million barrels per day during the quarter.

Aramco CEO Amin Nasser said, "Our East-West Pipeline, which reached its maximum capacity of 7.0 million barrels of oil per day, has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock and providing relief to customers affected by shipping constraints in the Strait of Hormuz."

Brent crude futures rose about 1 percent to close at $101.29 per barrel on Friday, while West Texas Intermediate settled at $95.42 per barrel. Brent crude prices rose 95 percent over the first quarter and are up 67 percent year-to-date. Aramco reported a gearing ratio of 4.8 percent at the end of the first quarter.

Its board approved a base dividend of $21.9 billion for the period, a 3.5 percent increase from a year earlier.

Europe’s chemicals sector has seen increased sales volumes in certain segments. A Germany-based chemicals company noted that the Middle East conflict disrupted supply chains of Asian competitors, prompting customers to return to European suppliers. The firm raised prices on many products to offset higher raw material, energy and logistics costs.

Two other European chemicals producers also cited increased sales volumes in certain segments, partly linked to pre-buying by customers.