Saudi Aramco Q3 profits surge 35% on oil prices, asset sale

Saudi Aramco reported a 35 per cent year-on-year increase in net profit for the third quarter, reaching USD 36.3 billion compared to USD 26.9 billion in the corresponding period last year. The surge was underpinned by the company's sale of its stake in PRefChem, a Malaysian refining and petrochemical joint venture with Petronas, which contributed significantly to the bottom line.

Excluding the gains from the asset divestment, adjusted net profit rose a more modest 9 per cent to USD 31.2 billion, reflecting the underlying operational strength of the company's core business. Strong refining margins provided substantial support to earnings as the company converted crude into refined products including diesel fuel and other petroleum derivatives.

Oil prices during the quarter averaged USD 95.20 per barrel, a substantial jump from USD 70.10 in the same quarter of the previous year. Geopolitical tensions in the Middle East, combined with supply disruptions and market uncertainty, underpinned elevated global crude valuations throughout the period.

The company leveraged its integrated infrastructure, including its East-West pipeline network, to optimize production and distribution amid the volatile market environment. Saudi Aramco's diversified downstream operations and strategic asset positioning enabled it to capitalize on the favourable pricing environment and refining conditions during the quarter.