Aramco profits jump 26% as Hormuz disruption chokes supply
Aramco CEO Amin Nasser said the market has already lost around 1 billion barrels of oil supply since the US-Israel-Iran war erupted on Feb. 28.
Saudi oil giant Aramco reported a sharp rise in first-quarter profits on Monday, as its chief executive warned that prolonged disruption in the Strait of Hormuz could continue choking global supply and delay a full market recovery for years.
Amin Nasser, chief executive of the world’s largest oil company, said the market has already lost around 1 billion barrels of oil supply since the US-Israel-Iran war erupted on Feb. 28, though rerouted exports and releases from strategic reserves have offset part of the shortfall.
“The energy supply shock that began in the first quarter is the largest the world has ever experienced,” Nasser said during the earnings call, after Aramco posted a 26% increase in profit for the first three months of the year, driven by higher crude prices.
Aramco's adjusted net income for the first quarter rose to $33.6 billion year on year, far ahead of analyst expectations of $26.6 billion. After the Iran war paralyzed traffic in the Strait of Hormuz, Aramco rapidly rerouted exports through the East-West pipeline, which connects its oil fields directly to the Red Sea, increasing its maximum capacity to 7 million barrels per day.
