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Aramco CEO Amin Nasser warned that global oil supplies have declined by an estimated one billion barrels over the past two months as shipping disruptions through the Strait of Hormuz continue to restrict flows.
Even if trade routes return to normal, he cautioned, stabilisation in energy markets may take time to materialise, according to Reuters.
Nasser made these remarks as Aramco announced its results for the first quarter of 2026 (Q1 2026), reporting net income of SR122bn, an increase of 25% from SR97.5bn in the same period last year.
Adjusted net income for the Saudi Arabian national oil and gas company rose 26.3% to $33.6bn from $26.6bn a year earlier.
Cash flow from operating activities was $30.7bn, a slight decline from $31.7bn in Q1 of the previous year.
Free cash flow was recorded at $18.6bn, slightly down from $19.2bn a year earlier, impacted by a $15.8bn working capital build.
Aramco's gearing ratio stood at 4.8% as of 31 March 2026, up from 3.8% at the end of 2025.
Capital expenditures amounted to $12.1bn in the reported quarter, down slightly from $12.5bn as the company continued to support its growth objectives.
In operational developments, the East-West Pipeline reached its maximum capacity of seven million barrels per day during the quarter, bolstering exports via Saudi Arabia’s west coast.
The company's domestic and international storage capacities further enhanced operational flexibility.
According to Aramco, investment in essential infrastructure and strong contingency planning ensured continued operations and minimised disruptions.
The company stated that in spite of temporary disruptions at certain domestic refining and processing facilities, it maintained a supply reliability rate of 96.3% in Q1. This was achieved by optimising the flow of hydrocarbon products through its integrated global network.
During the same period, the downstream segment utilised nearly 51% of Aramco’s crude oil production.
Nasser said: “Aramco’s first-quarter performance reflects strong resilience and operational flexibility in a complex geopolitical environment.
“Our East-West Pipeline, which reached its maximum capacity of seven million barrels of oil per day, has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock and providing relief to customers affected by shipping constraints in the Strait of Hormuz.
“Recent events have clearly demonstrated the vital contribution of oil and gas to energy security and the global economy and are a stark reminder that reliable energy supply is critical.
“Despite these headwinds, Aramco remains focused on its strategic priorities and is leveraging both its domestic infrastructure and its global network to navigate disruption.”
In March 2026, the company reported net income of $17.76bn for Q4 2025, a 20.5% decrease from the $22.34bn reported in Q4 2024.
"Aramco Q1 income rises 25% amid CEO’s warning on oil supply" was originally created and published by Offshore Technology, a GlobalData owned brand.
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