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Saudi Aramco reports April-June adjusted profit beat as Strait of Hormuz disruptions hit output

Saudi Aramco reports April-June adjusted profit beat as Strait of Hormuz disruptions hit output

Higher crude prices and stronger downstream earnings offset a sharp production drop, while Red Sea spillover from the U.S.-Iran conflict raised new blockade risks.

Fact Check
The core claim - a 33% jump in Saudi Aramco's Q2 profit driven by higher crude prices despite lower sales volumes amid Strait of Hormuz disruption - is confirmed by multiple independent authoritative financial outlets. The WSJ reports adjusted net income rose 33% to $33.4 billion from $25.2 billion a year earlier, citing higher crude prices, lower sales volumes, and mitigation of Strait of Hormuz disruption via the East-West Pipeline and alternative terminals. Bloomberg independently confirms the same 33% figure and $33.4 billion net income, noting exports continued via a pipeline bypassing the Strait of Hormuz. Every element of the claim is corroborated.
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Summary

Saudi Aramco said adjusted net profit for the April-June 2026 quarter rose to $33.4 billion, beating the analyst consensus of $30.6 billion, as higher crude prices and a stronger downstream business offset a steep decline in output caused by navigation disruptions in the Strait of Hormuz. Total hydrocarbon production fell to 9.56 million barrels of oil equivalent per day, down 25% from the previous quarter, while liquid production dropped 29% to 7.56 million barrels per day. Downstream adjusted EBIT reached $6.2 billion, topping forecasts, while upstream adjusted EBIT of $50.9 billion missed expectations. CEO Amin Nasser said the quarter was one of the toughest in Aramco's history but that the company still delivered robust results. Since July, the conflict has spread to the Red Sea, intensifying concern over a possible double blockade that could threaten both eastern and western export routes. Aramco said some domestic facilities were attacked during the quarter and after July, but as of June 30 the impact was not material to its financial position, results of operations or cash flows. Operating cash flow before working capital adjustments came in at $39 billion, net debt rose to $31.9 billion, gearing increased to 6.2%, and the company kept its quarterly base dividend at $21.9 billion while continuing share buybacks and holding its 2026 capital spending plan at $50 billion to $55 billion.

Terms & Concepts
  • adjusted net profit: Earnings reported after excluding certain items to show underlying performance.
  • downstream: The refining, processing and marketing part of an oil company’s business.
  • gearing: A leverage measure that shows how much debt a company carries relative to equity.