Saudi Aramco announced on Tuesday a 33% year-on-year increase in its second-quarter net income, which reached 125.2 billion Saudi riyals ($33.4 billion). The state-owned oil company attributed the results for the April to June period primarily to higher prices for crude oil and refined products.
In a statement released with its financial results, Aramco reported that the net income figure surpassed the $31.59 billion average forecast by analysts. The company also announced its cash flow from operating activities was $25.4 billion for the second quarter.
Aramco’s performance aligns with reports from other major energy firms that have posted increased profits amid higher global energy prices. ExxonMobil reported its second-quarter profits more than doubled to $14.5 billion compared to the same period last year, while Chevron’s earnings increased to $12 billion from $2.5 billion.
In response to these industry-wide results, U.S. President Donald Trump commented on the profits of American oil companies on Monday. Speaking to reporters at the White House, Trump stated, “They’re making too much money based on a shortage. I don’t like it.”
Aramco’s board declared a second-quarter base dividend of $21.9 billion, which is scheduled to be paid in the third quarter. The company’s gearing ratio, a measure of financial leverage, was reported at 6.2% at the end of June, an increase from 4.8% at the end of the first quarter.
Company officials addressed their operational strategy amid ongoing regional events affecting maritime routes. Aramco President and CEO Amin H. Nasser stated that the company has utilized its infrastructure to maintain supply.
“We continued to demonstrate our ability to maintain business continuity by capitalizing on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West Pipeline, storage capacity, and export terminals,” Nasser said in the company’s press release. “That enabled us to sustain production and exports while advancing key projects, despite the challenging regional environment.”
The East-West pipeline, which runs approximately 1,200 kilometers across Saudi Arabia to the Red Sea, provides an alternative export route to the Strait of Hormuz. The company noted in its report that it continues to use the pipeline to increase supply flexibility.
