Hi Bandung – Saudi Aramco recorded a significant increase in profit in the first quarter of this year.
Saudi Arabia’s state-owned oil company posted profit growth of 26 percent amidst the increasingly heated conflict in the Middle East region.
The surge in financial performance was supported by maximum utilization of Aramco’s east-west pipeline.
This infrastructure allows the company to continue distributing millions of barrels of oil every day even though the main shipping route in the Gulf region is disrupted due to regional conflicts.
Aramco achieved a profit of around 33.6 billion US dollars or the equivalent of IDR 540 trillion. Meanwhile, the company’s revenue increased almost 7 percent compared to the same period the previous year to 115.5 billion US dollars.
According to Aramco President and CEO, Amin Nasser, the pipeline has a capacity of up to 7 million barrels per day and is an important solution to maintain the stability of world energy supplies.
Impact of Conflict on Energy Markets
The pipeline allows distribution of oil from eastern Saudi Arabia to the port of Yanbu on the Red Sea without having to pass through the Strait of Hormuz.
The closure of this strategic route due to the US-Iran conflict since last February has disrupted the distribution of around 20 percent of global oil and gas supplies.
This situation caused the price of Brent crude oil to jump to close to 100 US dollars per barrel, up around 40 percent compared to before the conflict broke out.
Nasser also believes that the recovery of the global energy market will not take place quickly even if trade routes are reopened. If the disruption continues in the coming weeks, the market is not expected to return to stability until 2027.
Despite facing global uncertainty, Aramco ensured that it would maintain its quarterly dividend of US$ 21.9 billion to its shareholders.***
Source: The Guardian
