Aramco Q3 Profit Jumps 34.5% as War Lifts Oil Prices

Saudi Aramco’s third-quarter net profit rose 34.5% to US$36.25 billion, as oil prices pushed higher by the Middle East war offset lower output and attacks on energy facilities, Reuters reported on Tuesday (Nov 3).

The state oil giant earned US$26.9 billion in the same quarter a year earlier and US$32.7 billion in the second quarter, according to its filing with the Tadawul stock exchange. Adjusted net income rose 9% to about US$31.2 billion, above the US$30.66 billion median forecast of analysts, Reuters and Arab News reported.

Malaysia stake sale boosts earnings

Profit was lifted by higher revenue and a gain from exiting a joint venture, after Aramco sold its 50% stake in the PRefChem refining and petrochemical ventures in Malaysia to Petronas in September, Reuters and Arab News said.

Aramco’s average realised crude price was US$95.2 a barrel in the quarter, compared with US$70.1 a year earlier and US$108.1 in the second quarter. Hydrocarbon production averaged 11.05 million barrels of oil equivalent per day, down from 13.3 million a year earlier, while supply reliability slipped to 97.8% from 99.9%.

The company declared a base dividend of US$21.9 billion, up 3.5% from a year earlier. Free cash flow rose to US$28.2 billion from US$23.6 billion, Arab News reported.

Supply crisis and shipping capacity

Chief executive Amin Nasser said geopolitical uncertainty and attacks on key energy facilities “continued to amplify the global energy supply crisis”. According to Arab News, he estimated that global refined product supply has lost about 5 million barrels per day, with roughly 2 million from the Arabian Gulf, 2 million linked to the Russia-Ukraine conflict and 1 million from China’s product export restrictions.

Nasser said more than 130 attacks had removed nearly 15% of the effective capacity of the global fleet of around 540 very large crude carriers, and that effective fleet capacity had fallen by almost 40% once operational losses were included. He described the East-West pipeline to the Red Sea as a “critical lifeline”.

AFP reported that Saudi Arabia has raised its 2026 budget deficit forecast to 245 billion riyals, or 4.9% of GDP, from 165 billion riyals, and that the International Monetary Fund expects the Saudi economy to contract 3.3% this year.

What’s next

Aramco said production from the Zuluf field began in October and is set to reach up to 600,000 barrels per day by the end of 2026, while the second phase of the Jafurah gas project is due in 2027. The company is also exploring additional overseas storage and alternative export routes, according to Reuters.

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