Saudi Aramco reported a strong financial performance for the first half of 2026, posting adjusted net income of $67.2 billion, as the world's largest oil producer maintained crude supplies despite unprecedented disruptions to shipping through the Strait of Hormuz.

The company reported adjusted net income of $33.4 billion for the second quarter, while cash flow from operating activities reached $56.2 billion in the first six months of the year, including $25.4 billion in the April-June period.

Free cash flow totalled $30.9 billion in the first half, including $12.3 billion in the second quarter, with the company saying quarterly free cash flow was affected by a $13.6 billion working capital build.

$21.9bn dividend for Q2

Aramco's board declared a base dividend of $21.9 billion for the second quarter, to be paid in the third quarter, underscoring its commitment to sustainable shareholder returns despite heightened geopolitical uncertainty.

The results come after months of regional tensions that disrupted oil shipments through the Strait of Hormuz, a vital artery for global crude exports. Aramco said it was able to maintain production and exports by leveraging its diversified infrastructure, including the East-West Pipeline, storage facilities and export terminals, ensuring uninterrupted supplies to global markets.

Remarkable resilience

"Our first-half performance in 2026 has been defined by the remarkable resilience of our people and the agility of our business and operations to withstand and respond to rapidly changing market conditions," Aramco President and CEO Amin H. Nasser said.

He said the company successfully maintained business continuity despite the unprecedented supply disruption through the Strait of Hormuz, highlighting the strategic role of its infrastructure and long-term planning.

Nasser said geopolitical uncertainty and declining global oil inventories had reinforced the importance of energy security, adding that Aramco remains well positioned to respond quickly to changing market conditions while continuing to invest in long-term growth.

He added that the company entered the second half of the year with strong financial and operational momentum, supported by one of the strongest balance sheets in the industry, disciplined execution and low-cost, reliable operations.

Aramco's gearing ratio stood at 6.2% at the end of June, compared with 4.8% three months earlier.

Project progress

The company also reported progress across several major expansion projects. The Zuluf crude oil increment project remains on track for completion this year, while the Fadhili Gas Plant expansion is expected to be completed in 2027.

At the Jafurah Gas Plant, phase one continued steady production of sales gas and condensate, while procurement and construction activities for phase two are progressing, with completion expected in 2027.

Aramco also said it had agreed to sell its entire equity stake in PRefChem, as part of efforts to optimise its downstream portfolio. - TradeArabia News Service