Aramco maintains output despite attacks

Saudi Aramco said attacks on its facilities during July caused no material disruption to production, as the company rerouted crude exports and accelerated plans to strengthen capacity beyond the Strait of Hormuz.

President and chief executive Amin Nasser said the energy group continued operating through the strikes while maintaining a supply reliability rate of 98.4%. The performance underlined Aramco’s ability to draw on pipelines, storage sites and export terminals outside the Gulf during an extended period of regional conflict.

The company has increased crude movements through the East-West Pipeline, which links its Abqaiq processing centre in the east with Yanbu on the Red Sea coast. The route allows Saudi Arabia to bypass Hormuz, although vessels leaving Yanbu must still navigate waters exposed to attacks by Yemen’s Houthi movement.

Aramco is working to expand the volume it can export through alternative corridors. The East-West Pipeline has been operating at its maximum capacity of about seven million barrels per day, substantially above its original design level of five million barrels.

Nasser said additional investment in infrastructure would provide greater flexibility during prolonged shipping disruptions. The company is also using domestic and overseas storage facilities to meet customer requirements and manage delivery schedules.

The operational update accompanied second-quarter results showing a sharp rise in earnings as the conflict lifted crude and refined-product prices. Net profit climbed 44% from a year earlier to $32.69 billion, compared with $22.67 billion in the corresponding period of 2025.

Adjusted net income reached about $33.4 billion, up from $25.2 billion a year earlier. The difference between reported and adjusted figures reflected accounting items excluded from the company’s underlying performance measure.

Higher oil prices supported earnings despite lower sales volumes, increased operating costs and higher taxes. The company maintained its quarterly base dividend at $21.9 billion, reinforcing its importance to Saudi government finances and public investment programmes.

Aramco entered the crisis with one of the world’s largest integrated production, processing and distribution networks. Its assets include the Abqaiq processing complex, Ras Tanura export terminal, refineries, offshore fields and extensive pipeline systems across Saudi Arabia.

Those facilities have faced repeated threats during the wider conflict involving Iran, the United States and their regional allies. Houthi forces have also targeted Saudi energy infrastructure and shipping routes, seeking to extend pressure beyond the Gulf.

Company officials said the July attacks did not materially affect production volumes. Contingency arrangements allowed operations to continue while damaged or threatened facilities were inspected and secured.

The Strait of Hormuz remains the principal risk to global energy flows. Before the disruption, about a fifth of worldwide petroleum consumption passed through the narrow waterway separating Iran and Oman. It also carried large volumes of liquefied natural gas, petroleum products and petrochemical feedstocks.

Traffic through the strait has fallen sharply since hostilities intensified. A cargo vessel reported being struck by an unidentified projectile near Oman on Tuesday, highlighting persistent risks despite diplomatic efforts to restore navigation.

Nasser warned that the market could take as long as 18 months to rebuild depleted inventories even if normal traffic resumed immediately. More than 2.6 billion barrels of supply to major industries had effectively been removed or delayed during the disruption, he said.

Oil prices have remained volatile as traders assess military developments and conflicting claims about possible negotiations between Washington and Tehran. Brent crude fell sharply on Monday after planned US strikes were halted, but prices continued to carry a geopolitical premium.

The disruption has also altered global trading patterns. Buyers have drawn more heavily on supplies from the Americas, West Africa and other producers outside the Gulf, while freight and insurance costs have risen for ships entering high-risk waters.

Saudi Arabia possesses greater export flexibility than most Gulf producers because of the East-West Pipeline. Kuwait, Qatar and Iraq remain more dependent on Hormuz, while the United Arab Emirates can bypass part of the waterway through its pipeline to Fujairah.