Dubai: Saudi oil giant Aramco reported on Sunday a 25% rise in first-quarter net profit, mainly due to higher sales, while the East-West crude pipeline that circumvents the Strait of Hormuz has reached full capacity.
The world's top oil exporter reported net profit of $32.5 billion in the three months ended March 31, beating an LSEG consensus estimate of $30.95 billion. Total revenue climbed 11.4% from the previous quarter to $115.49 billion.
Aramco CEO Amin Nasser, who had warned during the company's previous earnings of "catastrophic consequences" if the strait remains shut, said the results reflect strong resilience and operational flexibility in a "complex geopolitical environment".
Iran's effective blockade of shipping through the crucial waterway following the U.S.-Israeli war against it prompted Aramco to ramp up crude flows from its production heartland on its east coast to the port of Yanbu on the Red Sea.
"Our East-West Pipeline, which reached its maximum capacity of 7.0 million barrels of oil per day, has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock and providing relief to customers affected by shipping constraints in the Strait of Hormuz," Nasser said in a statement.
"Recent events have clearly demonstrated the vital contribution of oil and gas to energy security and the global economy, and are a stark reminder that reliable energy supply is critical."
Aramco's adjusted net profit for the quarter was $33.6 billion, beating a company-provided median estimate from 13 analysts of $31.16 billion. The figure strips out $1.06 billion in non-operational accounting items, which were mainly tied to changes in inventory replacement costs, paper gains or losses on energy trading contracts and certain financing expenses.
Capital expenditure fell slightly to $12.1 billion in the quarter from $12.5 billion a year earlier, and sharply from $13.4 billion in the fourth quarter. Aramco had given guidance of $50-55 billion in capital expenditure this year.