Saudi oil giant Aramco reported a 44% increase in second-quarter net profit to US$32.69 billion as the Iran war drove higher prices for crude oil, refined products and chemicals while forcing the company to reroute shipments around the disrupted Strait of Hormuz.
The world’s largest oil exporter recorded net profit of US$32.69 billion for the three months ended June 30, up from US$22.67 billion a year earlier.
Aramco president and chief executive officer Amin Nasser said the company maintained business continuity despite what he described as an unprecedented supply disruption through the Strait of Hormuz, supported by its diversified asset base, storage capacity, export terminals and the East-West Pipeline.
The company said it maintained a supply reliability rate of 98.4% during the quarter despite continued geopolitical uncertainty across the region.
Since the US-Israeli war with Iran triggered a major disruption to global energy markets, Aramco has increased exports through its East-West Pipeline towards the Red Sea port of Yanbu. Nasser has previously described the route as a critical lifeline for the company.
However, the alternative route and Saudi export terminals on the Red Sea have also come under pressure.
In July, Iran-aligned Houthi forces announced a blockade targeting Saudi Arabia’s oil industry in the Red Sea, extending the disruption to another major waterway and contributing to higher oil prices.
The stronger quarterly earnings underline how the geopolitical disruption has supported oil producers through higher prices, even as Aramco has had to navigate increasingly complicated shipping routes and risks to its export infrastructure.
Reuters
