Aramco's Q2 Profits Soar as Iran War Reduces Oil Supply

Saudi Aramco reported a significant increase in second-quarter profits due to higher oil prices and reduced supply caused by the ongoing Iran war. The company's adjusted net income reached 125.2 billion Saudi riyal ($33.4 billion), beating analyst expectations of $31.59 billion. This represents a 33% year-on-year growth.

The Iran conflict has disrupted oil supplies through the Strait of Hormuz, but Aramco utilized its 1,200-kilometer East-West pipeline to maintain exports at 7 million barrels per day. Despite this, CEO Amin H. Nasser warned that it would take up to 18 months to replace depleted inventories even if the Strait were to reopen today.

Aramco's board announced a second-quarter base dividend of $21.9 billion to be paid over three months. The company's cash flow from operating activities came in at $25.4 billion, with a gearing ratio of 6.2% at the end of June compared to 4.8% in the first quarter.