Saudi Aramco reports profit surge on higher oil prices

Saudi Aramco announced a 9% increase in profit and raised its dividend payments in the third quarter, with the majority of the gains benefiting the Saudi state, as a surge in oil prices offset reduced output. The company's profit climbed to $31.2 billion, primarily due to a 35% rise in the average selling price of its oil, while it simultaneously faced numerous threats to its facilities from the Houthis in Yemen and Iranian attacks on ships through the Strait of Hormuz.

Despite successfully exporting oil at higher prices, Aramco's shares have not kept pace with global majors that primarily operate outside the Gulf region. The company's reported production levels were higher than those of the previous quarter, as Aramco adopted more challenging ship-to-ship transfers to transport crude through the Hormuz Strait and increased shipments via the Red Sea.

Aramco aims to maintain high production levels throughout the year, using every available route, and anticipates strong demand to persist for several more years. CEO Amin Nasser stated on an earnings call that it would take two years to replenish global oil storage reserves, even if the ongoing Iran conflict were to end immediately.