Updates throughout
State-controlled Saudi Aramco posted robust second quarter results today, as higher oil prices offset most of the impact of output losses resulting from the US-Iran war. The firm said attempts by Yemen's Houthi rebels to disrupt shipping in the Red Sea have not affected its export capacity.
Aramco reported an adjusted net income of $33.39bn in the second quarter, up by $8.2bn on the same period last year and down by $411mn on the first quarter, and exceeding the $31.59bn median of analysts' forecasts.
Aramco's total hydrocarbons production fell to 9.463mn boe/d in the second quarter from 12.780mn b/d of oil equivalent (boe/d) in the second quarter of last year and 12.614mn boe/d in the first quarter as it was forced to shut in much of its oil output due to the effective closure of the strait of Hormuz.
The US-Iran war and the effective closure of the strait of Hormuz has forced most Mideast Gulf countries to curtail their oil and gas output. For Aramco, liquids output posted the biggest decline, falling to 7.57mn b/d in April-June from around 10.48mn b/d a year earlier and 10.56mn b/d in the previous quarter. Gas production fell to 9.92bn ft³/d in the second quarter of this year, from 11.85bn ft³/d a year earlier and 10.51 ft³/d in Jan-March 2026.
Saudi Arabia exported most of its oil through the strait of Hormuz before the US-Iran war began. But it has been able to sustain a large part of its exports by diverting crude through its 7mn b/d East-West pipeline to the Red Sea terminal on Yanbu, which bypasses the key waterway.
But recent attempts by the Houthis to blockade Saudi maritime trade have put these lifeline exports at risk. Saudi crude exports from Yanbu fell by 470,000 b/d on the month to 3.67mn b/d in July, Kpler data show, with more volumes heading north towards Egypt instead of south through the Bab el-Mandeb strait.
Saudi Aramco chief executive Amin Nasser said today that the Bab el-Mandeb events had no impact on the firm's export capability. He said said Aramco continued to capitalise on all available routes from Yanbu, including the Bab el-Mandeb, Egypt's Suez Canal and the 2.5mn b/d Sumed pipeline which facilitates exports from the Egypt's Ain Sukhna port into the Mediterranean.
Aramco also confirmed that some of its facilities were targeted in attacks in the second quarter and more recently in July. But while Nasser said these caused some disruptions, the impact was not material to the company's finances or operations.
Production capacity intact
Naser said that Aramco would be able to bring crude production back to pre-war levels within days and up to its 12mn b/d maximum sustainable production capacity within three weeks. Saudi Arabia produced 10.88mn b/d of crude in Feburary, the last normal month of production before the US-Iran war, according to Argus estimates.
He also said that any damage resulting from the conflict would be absorbed by its existing capital expenditure plan for the year of $50bn-55bn.
"The current conflicts did not impact whatsoever our activity with regard to our long-term plans," Nasser said. Aramco said it continued to advance projects to maintain its 12mn b/d crude production capacity in the second quarter. This included the 600,000 b/d Zuluf project, which is expected online in 2026, and the 50,000 b/d second phase of the Dammam project, expected in 2027.
Higher oil prices helped cushion some of the blow from the company's inability to freely export oil from inside the Mideast Gulf. Aramco sold its crude at an average of $108.1/bl in the second quarter, up from $76.9/bl in the first quarter and $66.7/bl in the same period in 2025.
Revenues rose to $139.15bn, from $124.60bn in the first quarter and from $108.6bn a year earlier.
Aramco's board kept its base dividend relatively unchanged at $21.9bn in the second quarter, which will be paid in the third quarter.
