Saudi Aramco’s adjusted net profit rose 9% in the third quarter to $31.2 billion, as higher oil prices lifted earnings. The state-owned company said the result exceeded analysts’ expectations.
The conflict involving Iran heightened concerns about supply security after attacks on shipping in the Strait of Hormuz. Brent crude rose by more than 40% during the quarter, averaging above $90 a barrel. By mid-September, the global benchmark had passed $100, and it rose further the following month amid fears that fighting between the United States and Iran could resume.
Aramco expanded crude shipments from Ras Tanura, its main export hub on the Persian Gulf, in September as it sought to regain market share among Asian buyers. The company used the Strait of Hormuz route after attacks on its East-West Pipeline disrupted the alternative route via the Red Sea.
Houthi militia attacks also targeted Aramco energy infrastructure during the period, including facilities in Yanbu, the pipeline’s western endpoint, refineries in western Saudi Arabia, a major oil field and the company’s headquarters. Saudi Arabia continued exporting oil despite the attacks.
Aramco is the world’s largest oil exporter and a central part of Saudi Arabia’s industrial economy. Energy revenues and dividend payments provide much of the kingdom’s financing.
Sources: Der Spiegel.