By Fatma Younis
Saudi Aramco reported a 35% increase in third-quarter net profit, driven by higher oil prices and the sale of its stake in a Malaysian petrochemical venture.
Profit Details
Net profit rose to $36.3 billion from $26.9 billion in the year-earlier quarter. Adjusted net profit, which excludes the sale of a stake in PRefChem to Malaysian state oil company Petronas, increased 9% to $31.2 billion.
Oil Prices and Conflict Impact
The company sold oil for an average of $95.20 a barrel during the quarter, up from $70.10 a year earlier. Oil prices surged after the outbreak of the Iran war, which disrupted supply and created uncertainty.
Export Resilience
Despite the conflict, Aramco maintained a significant share of exports using its East-West pipeline to the Red Sea port of Yanbu after tanker traffic through the Strait of Hormuz was threatened by Iranian attacks. The pipeline was attacked on Sept. 10 but has resumed flows.
Saudi oil is also being transported through the strait via a U.S.-protected corridor near the coast of Oman. Exports have continued despite attacks on Aramco facilities by Iranian-backed Houthi rebels in Yemen.
Strategic Importance
Aramco remains a major source of revenue for the Saudi government as it invests in projects aimed at diversifying the economy.
