Net income rises 41.9% as the East–West Pipeline maintains energy flows amid the largest supply shock in history

Riyadh | BETH

Saudi Aramco’s net income attributable to shareholders increased by 41.9% in the second quarter of 2026 to SAR 121.51 billion, compared with SAR 85.63 billion in the same period last year.

Revenue rose by 19% to SAR 450.77 billion, driven by higher prices for crude oil, refined products, and chemicals, despite lower sales volumes. Adjusted net income reached SAR 125.20 billion.

During the first half of the year, net income increased by 33.3% to SAR 241.64 billion, while cash flow from operating activities reached SAR 210.6 billion and free cash flow totaled SAR 115.9 billion.

Free cash flow in the second quarter stood at SAR 46 billion, affected by a SAR 51.1 billion increase in working capital.

Supplies Continue

Aramco President and CEO Amin Nasser said the company maintained the continuity of production, transportation, and exports despite the unprecedented disruption in the Strait of Hormuz, benefiting from the East–West Pipeline, storage capacity, export facilities, and its integrated global network.

Aramco maintained a supply reliability rate of 98.4% during the second quarter, while continuing to advance its major projects despite challenging regional conditions.

Nasser described the strait crisis as the largest oil supply shock in history, noting that global markets had lost more than 2.66 billion barrels since the beginning of the crisis and that its consequences extended beyond energy to global food security.

Prices and Readiness

The results reveal two different factors:

The first is financial. Aramco benefited from higher prices for crude oil, refined products, and chemicals, rather than from increased sales volumes. This means that profit growth reflects strong prices and product margins in a market suffering from supply shortages.

The second is strategic. It lies in the company’s ability to continue exporting through infrastructure built over decades, particularly the East–West Pipeline, which redirected part of the supplies to the western coast, away from the Strait of Hormuz.

The 98.4% supply reliability rate is the most important figure in the results because it measures Aramco’s ability to fulfill its commitments during a crisis that disrupted one of the world’s most important energy corridors.

However, lower free cash flow compared with net income, together with the increase in working capital, reveals that the crisis also increased the amount of cash tied to inventory, operations, and sales. Higher profits therefore do not eliminate the cash pressures imposed by a volatile market.

An Investment That Preceded the Crisis

The results confirm that energy security is not built after maritime corridors are closed, but years beforehand.

The East–West Pipeline, storage facilities, and multiple export outlets are no longer merely operational assets. They have become an economic defense system that protects the Kingdom’s revenues and supports the stability of global markets.

The results also reinforce the importance of the Saudi-led maritime coalition, as continued exports through the western coast require the protection of the Red Sea, alongside political efforts to reopen the Strait of Hormuz.

Profits measure what the crisis did to prices, while supply reliability measures what Aramco did in confronting the crisis.