Saudi Aramco profits jump 33% in second quarter as Iran war squeezes oil supply

Saudi Aramco's second-quarter profit surged by 33% to $33.4 billion, following severe disruptions caused by the ongoing conflict in the Middle East. The world's largest oil company reported an adjusted net income of 125.2 billion Saudi riyal for the April to June period, surpassing analysts' expectations of $31.59 billion. The rise in profits is attributed to higher fossil fuel prices, driven by tensions between the U.S. and Iran.

Amid the conflict, Aramco has utilized its 1,200-kilometer East-West pipeline to bypass the Strait of Hormuz, ensuring maximum export capacity of 7 million barrels per day. Aramco CEO Amin H. Nasser credited the company's diverse asset base and infrastructure for maintaining business continuity despite the challenging regional environment.

Additionally, Aramco's board announced a second-quarter base dividend of $21.9 billion. The company's strong performance can be linked to the increase in prices of refined and chemical products and crude oil, though this was partially offset by a decline in the volume of crude oil and refined and chemical products sold. Meanwhile, U.S. President Donald Trump criticized major oil companies Exxon Mobil and Chevron for profiting from higher fuel prices, expressing his dissatisfaction with their earnings.