Saudi Aramco reported strong financial results for the first quarter of 2026, as higher crude prices and increased operational flexibility boosted earnings despite regional shipping challenges linked to the Strait of Hormuz.
The energy giant announced that adjusted net income climbed to $33.6 billion during the quarter, compared to $26.6 billion recorded a year earlier. Meanwhile, net income rose to $32.5 billion, reflecting continued strength in global energy demand and oil market performance.
Dividend growth and stronger oil prices
Aramco declared a base dividend of $21.9 billion for the second quarter, marking a 3.5 percent increase year on year. The company also reported capital expenditures of $12.1 billion as it continued investing in long-term expansion and infrastructure projects.
Furthermore, the company benefited from improved crude oil realizations. Aramco stated that the average realized crude price reached $76.90 per barrel during the quarter. This figure slightly exceeded the $76.30 per barrel recorded in the first quarter of 2025 and showed a significant improvement from $64.10 in the final quarter of 2025.
However, free cash flow declined slightly to $18.6 billion because of a substantial working-capital build worth $15.8 billion. Despite this, analysts noted that the company maintained strong financial stability and healthy cash generation.
Pipeline expansion strengthens exports
A major operational development involved the rapid expansion of East-West Pipeline capacity. Aramco confirmed that the pipeline reached its full operational capacity of seven million barrels per day during the quarter.
Consequently, Saudi Arabia successfully maintained crude exports through its west coast ports while shipping constraints affected the Strait of Hormuz. Industry experts believe the pipeline’s performance highlights Aramco’s growing importance as both a leading oil producer and a strategic energy-security asset for the kingdom.
In addition, Aramco reported that its gearing ratio increased to 4.8 percent from 3.8 percent at the end of 2025. Nevertheless, the figure remains low compared to global industry standards.
