Saudi Aramco reported a 35% increase in third-quarter net profit, driven by higher oil prices and the sale of a stake in a Malaysian company. The state-owned oil giant's net profit rose to $36.3 billion, up from $26.9 billion in the same quarter last year. Excluding the sale of its stake in PRefChem to Petronas, adjusted net profit increased by 9% to $31.2 billion.
The company benefited from strong profit margins at its refineries, which convert crude oil into products like diesel fuel. Saudi Aramco sold its oil at an average price of $95.20 per barrel during the quarter, compared to $70.10 in the previous year. The surge in oil prices followed the outbreak of the Iran war, which disrupted supply and created uncertainty about the conflict's trajectory.
Despite disruptions from the war, Saudi Aramco maintained a significant share of its oil exports using its East-West pipeline to the Red Sea port of Yanbu. The pipeline, which was attacked in September, has since resumed operations. Additionally, Saudi oil is now being transported through the Strait of Hormuz using a U.S.-protected corridor near Oman's coast, allowing exports to continue despite attacks on Aramco facilities by Iranian-backed Houthi rebels in Yemen.
As a major revenue source for the Saudi government, Aramco's profits support the country's efforts to diversify its economy through various investment projects.