Saudi Aramco Q1 Profit Rises 26% as East-West Pipeline Reaches Full Capacity

Saudi Aramco on Sunday reported a 26% year-on-year increase in first-quarter adjusted net income to $33.6 billion, beating analyst expectations of $31.2 billion. The result also marked a 34% rise from the $25.1 billion recorded in the previous quarter.

The Saudi energy company attributed much of the performance to its East-West Pipeline reaching full operational capacity. The pipeline hit its maximum throughput of 7 million barrels per day during the quarter. Company officials said this allowed it to bypass constraints in the Strait of Hormuz and maintain supply to customers.

Iran's blockade of the strait has led to the loss of nearly a billion barrels of oil, with the shortfall increasing daily while the sea lane remains closed. "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," the company CEO said in a statement.

Brent crude futures rose about 1% on Friday to close at $101.29 per barrel after further incidents in the region, while West Texas Intermediate settled at $95.42. Brent prices climbed 95% during the first quarter and are up 67% year-to-date. Oil market volatility has been driven by Iran's actions, including missile strikes on the United Arab Emirates and U.S. strikes on two Iranian tankers attempting to evade the naval blockade.

This infrastructure move helped stabilize deliveries as the global energy system faced strain from the ongoing Iran conflict. Executives from multiple oil and gas companies noted on recent earnings calls that the disruption exposed vulnerabilities in worldwide energy supply chains.