Aramco records a significant increase in profits despite regional tensions

According to a press release from Associated Press, this growth is attributable to the rise in crude oil selling prices and an exceptional transaction: the sale of its stake in the Malaysian refining and petrochemical group PRefChem.

The adjusted net profit, excluding the impact of this disposal, amounts to approximately $31.2 billion, showing an annual increase of 9%, a growth rate notably lower than that of the published profit. This distinction allows for the assessment of the group’s industrial performance by separating recurring revenues from exceptional gains related to the sale of assets.

The average price of a barrel of oil sold by Aramco reached $95.20, compared to $70.10 the previous year, according to data reported by AP. This increase in prices has supported the group’s revenues, despite difficulties related to the regional war which complicates the transport of hydrocarbons.

Aramco continues to use its East-West oil pipeline, connecting oil facilities to Yanbu, on the Red Sea, in order to circumvent disruptions to navigation in the Strait of Hormuz. The group is also facing risks related to potential attacks against its infrastructure and its ships. These logistical constraints lead to an increase in costs and a decrease in the predictability of exports.

Aramco’s financial performance does not guarantee a stabilization of prices on the global oil market. High prices can support profits while increasing costs for transport companies and consumers, particularly in Europe.

The oil market situation depends on multiple factors, such as global supply, stock levels, shipping routes and refining margins. Therefore, Aramco’s profit alone cannot predict the evolution of fuel prices in France. It nevertheless illustrates a paradox of the energy crisis: disruptions that weaken supply can also increase the revenues of some producers.