Aramco Profit Soars 33% on Higher Oil Prices and Strong Refining Margins

Saudi Aramco's second-quarter profit soared by 33% year-over-year as higher oil prices and strong refining margins boosted earnings. Despite disruptions to global energy supply chains, Aramco was able to maintain operations thanks to decades of investment in infrastructure.

Aramco benefited from the US-Iran war, which drove up Brent crude prices to almost $97 a barrel during the quarter. The company further capitalized on this premium by increasing exports of refined products such as diesel and jet fuel, earning an additional nearly $11 a barrel.

The strong performance allowed Aramco to maintain its base dividend at $21.9 billion, with most of the payout going to Saudi Arabia's government, which owns almost 98% of the company. Oil receipts account for about 55% of state revenue, and if Aramco can sustain this contribution, it will help limit the government's borrowing requirements.