DUBAI: Saudi oil giant Saudi Aramco reported on Sunday a 25 per cent rise in first-quarter net profit, mainly due to higher sales, while the East-West crude pipeline that circumvents the Strait of Hormuz has reached its full capacity.
The world's top oil exporter reported net profit of US$32.5 billion in the three months ended March 31, beating an LSEG consensus estimate of US$30.95 billion. Total revenue climbed 11.4 per cent from the previous quarter to US$115.49 billion.
Aramco chief executive officer Amin Nasser, who had warned during the company's previous earnings of "catastrophic consequences" if the strait remains shut, said the results reflect strong resilience and operational flexibility in a "complex geopolitical environment".
Iran's effective blockade of shipping through the crucial waterway following the US-Israeli war against it prompted Aramco to ramp up crude flows from its production heartland on its east coast to the port of Yanbu on the Red Sea.
"Our East-West Pipeline, which reached its maximum capacity of 7.0 million barrels of oil per day, has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock and providing relief to customers affected by shipping constraints in the Strait of Hormuz," Nasser said in a statement.
"Recent events have clearly demonstrated the vital contribution of oil and gas to energy security and the global economy, and are a stark reminder that reliable energy supply is critical."
Aramco's adjusted net profit for the quarter was US$33.6 billion, beating a company-provided median estimate from 13 analysts of US$31.16 billion.
The figure strips out US$1.06 billion in non-operational accounting items, which were mainly tied to changes in inventory replacement costs, paper gains or losses on energy trading contracts and certain financing expenses.
Capital expenditure fell slightly to US$12.1 billion in the quarter from US$12.5 billion a year prior, and sharply down from US$13.4 billion in the fourth quarter. Aramco had given guidance of US$50-55 billion in capital expenditure this year.