Saudi Aramco profits jump 35% despite attacks on oil facilities

Saudi oil giant Aramco on Tuesday announced a 34.6% surge in third-quarter net profit, as the Middle East war keeps crude prices high while the kingdom's energy infrastructure comes under regular attack. ADVERTISEMENT ADVERTISEMENT Yemen's Iran-backed Houthis have targeted Saudi tankers, pipelines, storage facilities and refineries regularly since hostilities resumed in July, intensifying their strikes in recent weeks. The kingdom has also had to contend with the Houthis and Iran hampering traffic in the straits of Bab al-Mandeb and Hormuz, complicating exports. Yet Aramco — the cornerstone of Saudi Arabia's economy and one of the world's most valuable companies — saw its profits soar during the third quarter, helped by higher oil prices and a gain from selling its stake in a joint venture. The firm said net profit hit 135.9 billion riyals (€32.3bn) in the third quarter, compared with around 101 billion riyals (€24bn) in the same period a year earlier. The result included a 25.9 billion riyal (€6.2bn) gain from selling its stake in the PRefChem refining and petrochemicals joint venture to Malaysia's Petronas. The results come as energy majors around the world have seen earnings surge because of disruptions to oil and gas supplies in the Middle East, pushing up refining margins and prices. But Aramco's boss warned that the conflict continued to weigh heavily on energy security. "Geopolitical uncertainty and attacks on key energy facilities continued to amplify the global energy supply crisis in the third quarter of 2026, with serious implications for global energy security," president and CEO Amin H. Nasser said in a statement. Adjusted net income came in at nearly 117 billion riyals (€27.8bn), up 9% from a year earlier but down about 7% from the second quarter. That beat a median forecast of $30.66 billion (€27.3bn) from 12 analysts, according to Reuters, citing consensus estimates shared by Aramco. "The earning results are likely to be rosier compared (with) a year ago, when oil prices were much lower, but less promising relative to last quarter," Robert Mogielnicki, a research fellow at the Arab Gulf States Institute, told AFP. In the second quarter, Aramco reported a 44% year-on-year increase in net profit to 122.6 billion riyals (€29.1bn). The Middle East war, which began on 28 February with US and Israeli strikes on Iran, has upended global energy markets, led to the widespread drawing down of strategic reserves and spurred inflation. And while the war rages in the Gulf, Ukrainian drones have also battered Russian energy infrastructure, prompting Moscow to restrict exports of fuels including petrol and diesel. Last month, the Houthis said they targeted Aramco's headquarters, a vast complex comprising numerous buildings and residential compounds in the kingdom's east. Saudi officials said a building was hit in the area housing Aramco's operations centre, while two company employees who spoke to AFP on condition of anonymity said a tower in the headquarters was struck. Oil market turmoil weighs on Saudi economy With the Strait of Hormuz contested, US naval support has helped millions of barrels of crude pass through the crucial waterway each day. Last month, US Central Command said it had helped Gulf countries export more than 1.5 billion barrels of crude oil through the strait since the summer, and facilitated the passage of more than 3,000 commercial vessels over the past six months. The increase in Gulf exports, however, has done little to prevent market volatility. Oil prices tumbled more than 7% on Monday, as signs that Tehran and Washington were renewing dialogue boosted hopes of ending the Middle East war. Back in the kingdom, months of uncertainty have added to economic headwinds. Despite government revenues coming in above initial forecasts, Saudi Arabia has revised up its projected budget deficit for 2026 to 245 billion riyals (€58.2bn), or 4.9% of gross domestic product, from an initial forecast of 165 billion riyals (€39.2bn). Government spending is expected to exceed initial projections by 9.3%, while the finance ministry forecasts the Saudi economy will contract by 3.6% in 2026, driven by a 21.8% decline in oil-related activity. The kingdom expects to reduce its deficit to 191 billion riyals (€45.4bn) in 2027, or 3.6% of GDP, while continuing to invest in economic diversification projects. The IMF expects Saudi Arabia to end the year with a 3.3% contraction in GDP, five percentage points below its previous forecast in July.