Xcruit Energy

Editorial Staff | XcruitEnergy | Tuesday, August 04, 2026 | 12:00 PM UTC

Saudi Aramco posted adjusted net income of $33.4 billion for the second quarter of 2026, up 33% from $25.2 billion a year earlier, according to Bloomberg; The National separately put the prior-year base at $25 billion. The result beat analysts' average estimate of $31.59 billion compiled by CNBC, and Bloomberg's own poll of $31.1 billion. Ahead of the release, brokerage AlJazira Capital had forecast an even larger 40% jump, putting expected profit near $31.85 billion.

On an unadjusted basis — the figure filed with the Saudi stock exchange - net profit came in at SAR122 billion ($32.5 billion), up 42% year-on-year, as revenue rose 19% to SAR451 billion. A separate Arab News report put the same unadjusted figure marginally higher, at $32.69 billion against $22.67 billion a year ago — a 44% rise. The small gap between the two figures likely reflects rounding and slightly different comparison bases; both trace back to the same underlying results.

Zooming out to the half-year picture, six-month net profit climbed 33 percent year-on-year, while revenue for the period rose 13 percent.

Saudi Aramco oil facility in Saudi Arabia | (Source: Pexels; accessed August,4th, 2026)

War Reroutes the Oil Map

The profit jump traces directly back to the more than five-month-old conflict between the US and Israel and Iran, which erupted after strikes on Feb. 28, 2026. Iran responded by effectively shutting the Strait of Hormuz, the corridor that once carried roughly 20% of the world's traded oil, and a subsequent US naval blockade added to the disruption. CNBC reports the conflict has since drawn in further countries in the region, including Iraq and Egypt.

Aramco leaned on its East-West Pipeline, a 1,200-kilometer (746-mile) link running from the company's eastern fields to the Red Sea. The line was ramped up to its maximum capacity of 7 million bpd back in the first quarter, according to Aramco's own results release, and has stayed there since, bypassing the chokepoint entirely.

The rerouting effort has come at a cost. Realised crude prices averaged $108.10 a barrel in the second quarter, up from $66.70 a barrel a year earlier and $76.9 a barrel in the first quarter of 2026. Brent crude itself has swung wildly through the war, trading as high as $103 a barrel in recent weeks after spiking well above $119 at the conflict's peak - a sharp move from the roughly $70 level seen before the fighting began.

Production Takes a Hit as Prices Rise

Higher prices have not come without a volume trade-off. Hydrocarbon production averaged 9.46 million barrels of oil equivalent a day in the second quarter - 9.5 million by Arab News' rounding — down sharply from 12.61 million boe/d in the first quarter, as the Strait closure forced output curbs. Upstream adjusted EBIT slipped to $50.9 billion in the second quarter from $54.2 billion in the first, as lower volumes and higher royalties outweighed the benefit of stronger prices.

Aramco president and CEO Amin Nasser attributed the company's resilience to years of pre-positioned infrastructure, saying the firm continued to demonstrate business continuity despite the "unprecedented supply disruption through the Strait of Hormuz", a reference to the pipeline, storage and export network built up over multiple decades, according to CNBC.

Cash Flow, Debt, and Dividends

Free cash flow fell to $12.3 billion (SAR46 billion) in the second quarter, down from $18.6 billion in the first quarter - a drop Arab News attributed largely to a $13.6 billion working-capital build. Measured year-on-year, AGBI put the same quarter's free cash flow at SAR46 billion, down from SAR57 billion a year earlier. Cash flow from operating activities came in at $25.4 billion for the quarter.

The company's gearing ratio — a measure of net debt relative to capital - rose to 6.2% at the end of June, up from 4.8% at the end of March. Despite the pressure, the board approved a second-quarter base dividend of $21.9 billion — flat against the $21.9 billion base dividend declared for the first quarter. Including a performance-linked component, AGBI put the total second-quarter payout at roughly $22 billion, taking the total dividend for the first half of 2026 to $44 billion, payable August 27.

Ownership and Market Context

The Saudi government owns 81.5 percent of Aramco, with the Public Investment Fund holding a further 16 percent, leaving roughly 2.5 percent available to minority investors on the Tadawul exchange. Aramco shares closed 2% higher at SAR27.12 the day before the results, up 14% since the start of the year.

Aramco's results echo a broader pattern across the industry: oil supermajors have reported outsized quarterly profits industry-wide as the war has kept fossil-fuel prices elevated across the board.

Frequently Asked Questions

Why did Aramco's profit jump in the second quarter of 2026?

Adjusted net income rose to $33.4 billion, driven mainly by sharply higher realised crude prices tied to the Iran war and the resulting disruption of Middle East oil supply.

How much did Aramco actually beat analyst forecasts by?

It topped CNBC's compiled estimate of $31.59 billion and Bloomberg's poll of $31.1 billion, and came in well below AlJazira Capital's more bullish pre-earnings forecast of a 40% jump.

What is the East-West Pipeline and why does it matter?

It's a 1,200-kilometer pipeline that lets Aramco move crude from its eastern fields to the Red Sea coast, letting exports continue at 7 million bpd a level it reached back in Q1 2026 without transiting the blocked Strait of Hormuz.

How high did oil prices climb during the war?

Brent crude spiked above $119 a barrel at the conflict's peak before settling closer to $103, still well above the roughly $70 level seen before the fighting started.

Did Aramco's oil production fall because of the war?

Yes. Hydrocarbon output averaged 9.46 million barrels of oil equivalent a day in the second quarter, down from 12.61 million boe/d in the first quarter of 2026.

Is Aramco's dividend still intact despite the disruption?

Yes. The board approved a second-quarter base dividend of $21.9 billion, flat versus the prior quarter; including a performance-linked component, AGBI puts total first-half payouts at $44 billion.

Has the war increased Aramco's debt levels?

Its gearing ratio rose to 6.2% at the end of June from 4.8% at the end of March, reflecting higher capital spending and a working-capital build during the disruption.

Who owns Saudi Aramco?

The Saudi government holds 81.5 percent, the Public Investment Fund owns 16 percent, and the remaining 2.5 percent trades freely on the Tadawul exchange.

When and how did the US-Iran war begin?

The conflict began after the US and Israel struck Iranian targets on Feb. 28, 2026, after which Iran moved to effectively close the Strait of Hormuz to shipping; CNBC reports the fighting has since spread to draw in Iraq and Egypt.

Are other big oil companies also reporting bumper profits?

Yes — oil supermajors across the industry have posted outsized quarterly earnings as the war has kept global fossil-fuel prices elevated.

What happened to Aramco's free cash flow this quarter?

It fell to $12.3 billion from $18.6 billion in the first quarter, a decline Arab News linked to a $13.6 billion working-capital build rather than weaker operations.

How did investors react to the results?

Aramco shares closed 2% higher at SAR27.12 the day the results were reported, and are up 14% since the start of 2026.

How does the half-year performance compare with the single quarter?

Over the full first half, net profit climbed 33 percent year-on-year on 13 percent higher revenue, broadly consistent with the second-quarter trend on its own.

Aramco Profit Jumps 33% as US-Iran War Boosts Oil Prices