Saudi Aramco has reported a 44% rise in second-quarter net profit, as war-driven disruption to Middle Eastern oil flows pushed up energy prices.
Net income reached $32.69bn in the three months to June 30th, compared with $22.67bn a year earlier. The company’s average realised crude price climbed to $108.10 a barrel from $66.70, more than compensating for lower sales volumes. Adjusted net income was $33.4bn.
The cash figures were less exuberant. Operating cash flow stood at $25.4bn and free cash flow at $12.3bn, the latter reduced by a $13.6bn build-up in working capital. Even so, Aramco declared a quarterly base dividend of $21.9bn, underlining its continuing importance to Saudi Arabia’s finances.
“Aramco’s scale and an uncomfortable truth: geopolitical disorder remains highly profitable for the world’s dominant oil producer”
The quarter also tested the company’s vaunted operational resilience. Aramco said it maintained supply reliability of 98.4%, using the East-West Pipeline, storage facilities and Red Sea export terminals to divert shipments away from the Strait of Hormuz. Amin Nasser, its chief executive, said global industry had lost access to more than 2.6bn barrels and warned that depleted inventories could take up to 18 months to rebuild, even if the strait reopened immediately.
Aramco’s roots stretch back to a 1933 concession granted to Standard Oil of California. Commercial production began in 1938 at Dammam Well No.7, the “Prosperity Well”. Saudi Arabia progressively acquired the business, taking full ownership in 1980; Saudi Aramco was formally established eight years later.
Its financial record is unmatched in the industry, though closely tied to the oil cycle. Net income reached a record $161.1bn in 2022, before easing to $121.3bn in 2023 and $106.2bn in 2024. Adjusted earnings remained above $100bn in 2025. The latest rebound therefore reflects both Aramco’s scale and an uncomfortable truth: geopolitical disorder remains highly profitable for the world’s dominant oil producer.
