Higher Oil Prices Lift Saudi Aramco’s Third-Quarter Profit by 35% Despite Attacks

Saudi Arabia’s state-owned oil giant, Saudi Aramco, has reported a 34.5 per cent increase in third-quarter net profit, as higher crude oil prices and stronger refining margins helped offset production and export disruptions caused by the ongoing Middle East conflict.

The company announced on Tuesday, November 3, that its net profit for the three months ended September 30 rose to $36.25 billion, compared with $26.9 billion recorded during the corresponding period in 2025.

However, adjusted net income, which excludes certain exceptional gains, increased by a more modest nine per cent to $31.2 billion from $28.6 billion a year earlier.

The difference was partly driven by Aramco’s sale of its stake in PRefChem, a Malaysian refining and petrochemical joint venture, to Malaysian state-owned oil company Petronas.

Higher oil prices were another major contributor to the performance. Aramco said the average price at which it sold crude oil increased to $95.20 per barrel during the quarter, compared with $70.10 in the same period last year.

The increase followed disruptions to global energy supplies and uncertainty over the conflict involving the United States, Israel and Iran, which began in February 2026.

Despite the improved earnings, Aramco has faced significant operational challenges as attacks on energy infrastructure and threats to shipping routes have affected oil production and exports.

The company’s East-West Pipeline, which transports crude from the kingdom’s eastern oil-producing region to the Red Sea port of Yanbu, has become increasingly important in maintaining exports amid disruption to tanker traffic through the Strait of Hormuz.

The pipeline was attacked in September but subsequently resumed operations. Aramco said its ability to redirect flows through the pipeline’s multiple lines helped it restore oil loadings in the western region.

The company also reported that its supply reliability fell to 97.8 per cent during the third quarter, compared with 99.9 per cent in the same period last year.

Saudi Arabia’s oil production has also declined since the outbreak of the conflict. Data cited by the Organisation of the Petroleum Exporting Countries (OPEC) showed the kingdom producing approximately eight million barrels per day in September, down from slightly above 10 million barrels per day before the war.

Aramco does not publish its crude oil production figures, but reported that its total hydrocarbon production averaged 11.05 million barrels of oil equivalent per day during the quarter, compared with 13.3 million a year earlier.

Aramco President and Chief Executive Officer Amin Nasser said geopolitical uncertainty and attacks on key energy facilities had intensified the global energy supply crisis, with serious implications for energy security.

He said the company’s operational flexibility and established supply network had enabled it to continue delivering to customers despite the difficult conditions.

The company is also exploring additional overseas storage facilities and alternative export routes to reduce its exposure to disruptions in critical shipping corridors.

Beyond its profit figures, Aramco reported operating cash flow of $38.7 billion and free cash flow of $28.2 billion during the quarter. Its board also declared a base dividend of $21.9 billion, representing a 3.5 per cent increase from the corresponding period last year.

The results highlight the financial benefits that higher oil prices can bring to major producers, even as conflict and attacks threaten their infrastructure and reduce the volumes they can supply.

For Saudi Arabia, Aramco remains a major source of government revenue as the kingdom continues investing in economic diversification projects and efforts to reduce its dependence on oil.