Saudi energy giant Aramco reported a quarterly profit of $33.4 billion, according to the company's financial statement, up from $25.2 billion a year earlier, driven by a surge in oil prices to an average of $108.10 per barrel. Production fell 28% to 7.57 million barrels per day. The East-West pipeline and a defense pact with Pakistan helped insulate revenue from the Houthi conflict, but Aramco cautioned that its Q3 outlook remains muddled due to the ongoing Red Sea blockade.
Saudi Aramco reported a second-quarter profit of $33.4 billion, according to the company's financial statement, surpassing the $32 billion figure The Zioneer reported earlier this morning. The jump from $25.2 billion a year earlier was driven by an average realized oil price of $108.10 per barrel, compared to $66.70 in the same period last year. Production, however, fell 28% to 7.57 million barrels per day, reflecting reduced export volumes.
The company's earnings were insulated from the ongoing Houthi threat to Red Sea shipping by the East-West pipeline, which bypasses the Bab el-Mandeb Strait, and a defense pact with Pakistan that has helped secure key infrastructure. Despite these measures, Aramco's Q3 outlook remains muddled due to the renewed conflict with the Houthis and the Red Sea blockade, as The Zioneer has previously reported.
The results underscore the dual impact of the regional conflict: higher oil prices boosting revenue while operational risks and reduced export volumes constrain output. The Q3 outlook will depend on the trajectory of the Houthi campaign and the effectiveness of Saudi diplomatic and military efforts to break the blockade.
2 developments
- ConfirmedSaudi Aramco's Jazan refinery shut, repairs expected by August 15 after Houthi strike
- DevelopingExxonMobil posts $14.5 billion profit on war-driven oil price surge
- DevelopingSaudi Aramco resumes oil loading at Ras Tanura after four-month Strait of Hormuz pause
- DevelopingOil prices top $100 for second time in two days after Houthis target Saudi vessels in Red Sea
Source and signal
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