Saudi Aramco announced a significant 33% increase in its second-quarter profit, reaching $33.4 billion, up from $25.2 billion a year earlier. This figure surpassed analysts' estimates of $31.1 billion. The surge in profit is attributed to elevated oil prices, which have been influenced by the ongoing conflict between the US and Iran, enabling the company to capitalize on higher crude values.
While the company did not explicitly state that the recent Houthi attacks had no material impact on operations in this specific Bloomberg article, other reports indicate that Saudi Aramco did suspend operations at its 400,000 barrel per day Jazan refinery on July 27 following a Houthi attack. The attack damaged the refinery's Integrated Gasification Combined Cycle complex and tank farm area. Repairs are tentatively scheduled for completion by August 15, 2026. The Jazan refinery is strategically important as it ships refined products without passing through the Strait of Hormuz.
Despite the temporary shutdown of the Jazan refinery and other reported drone strikes on Saudi oil infrastructure, the broader impact on Saudi Arabia's oil exports appears to have been mitigated by strategic routing and higher oil prices. The East-West pipeline, capable of transporting 5 million barrels a day for export, continued operations even after a drone strike on a pumping station. Overall, Saudi Arabia's revenues have increased due to elevated oil prices, even with potentially lower shipping volumes, allowing them to narrow their budget deficit to $9.1 billion in Q2 2026.
