Saudi Aramco Q1 Adjusted Net Income $33.6B, Up 26% YoY, Beats $31.2B Estimate as East-West Pipeline Maxes Out
Original: Saudi Aramco Q1 profit jumps 26% as key pipeline reaches capacity amid Iran war View original →
Saudi Aramco reported Q1 2026 adjusted net income of $33.6 billion on Sunday, beating the analyst consensus of $31.2 billion by 7.7% and representing a 26% year-over-year increase from $26.6 billion in Q1 2025. Quarter-over-quarter, the figure marks a 34% jump from $25.1 billion in Q4 2025, per a statement Aramco provided to CNBC.
CEO Amin Nasser attributed the performance to the East-West Pipeline: "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."
Iran's blockade of the Strait of Hormuz has caused cumulative supply losses approaching one billion barrels. The disruption drove Brent crude up 95% during Q1; the benchmark closed Friday at $101.29 per barrel, up 67% year-to-date. WTI settled at $95.42 per barrel. Aramco's gearing ratio stood at 4.8% at end of Q1, maintaining financial flexibility while continuing base dividend payments.
SLB CEO Olivier Le Peuch noted on his company's earnings call that the Iran war has "demonstrated the fragility of the global energy system," pointing to accelerating investment in alternative supply infrastructure. Aramco's East-West Pipeline is now the critical routing for European and Asian refiners locked out of Hormuz-transiting crude.
Watch: Q2 oil price trajectory (Iran negotiations vs. extended blockade), Brent versus the $110 resistance level, and Aramco's next quarterly earnings. Iran's May 10 threat to extend Hormuz restrictions to nations joining U.S. sanctions would further widen the premium on pipeline-routed crude.
Not investment advice. Verify all figures with primary sources before acting.
Related Articles
Oil briefly touched $90 after a fresh tanker-strike shock around Iran, then gave back gains as Tehran said U.S. talks could proceed. The move keeps Hormuz risk, shipping insurance, and inflation-sensitive energy costs at the center of the week’s market pricing.
Hormuz vessel traffic fell 33% on Friday, while Brent settled 1% higher at $83.55. Saudi Arabia said a fire at Saudi Aramco’s Jazan refinery was extinguished Sunday with no injuries; the cause was not disclosed, and a Houthi attack claim remains unverified.
Iran's Army spokesperson warned on May 10 that ships from countries joining U.S. Iran sanctions will be barred from the Strait of Hormuz. Brent crude closed Friday at $101.29 per barrel, up 95% in Q1, with cumulative supply losses approaching one billion barrels.