{"id":436198,"date":"2026-05-11T12:30:16","date_gmt":"2026-05-11T12:30:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/436198\/"},"modified":"2026-05-11T12:30:16","modified_gmt":"2026-05-11T12:30:16","slug":"aramco-profit-jump-proves-wisdom-of-decades-old-pipeline-investment","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/436198\/","title":{"rendered":"Aramco profit jump proves wisdom of decades-old pipeline investment"},"content":{"rendered":"<p>      The News    <\/p>\n<p class=\"yf-1fy9kyt\">Aramco\u2019s profit jumped in the first three months of the year after surging oil prices helped offset lower exports from the closure of the Strait of Hormuz, justifying the strategic value of the kingdom\u2019s decades-old investment in pipelines that bypass the chokepoint.<\/p>\n<p class=\"yf-1fy9kyt\">The company, which provides more than half of government revenues, also bumped up its quarterly dividend payment by an additional $742 million. Most of that cash goes to the Saudi finance ministry and the Public Investment Fund.<\/p>\n<p class=\"yf-1fy9kyt\">Aramco\u2019s East-West pipeline \u2014 which has been moving 7 million barrels of oil a day from the Gulf to the Red Sea \u2014 \u201chas proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock,\u201d chief executive Amin Nasser said in a statement.<\/p>\n<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/05\/97fe9e696cd358fe670a8f7cc44c547d.png\" alt=\"A chart showing Aramco\u2019s quarterly profits.\" loading=\"eager\" height=\"782\" width=\"739\" class=\"yf-lglytj  loaded\"\/> A chart showing Aramco\u2019s quarterly profits.      <\/p>\n<p class=\"yf-1fy9kyt\">The pipeline has been critical not just for Aramco, but also for the Saudi state. While other Gulf countries contend with <a href=\"https:\/\/finance.yahoo.com\/sectors\/energy\/articles\/higher-oil-prices-bolster-earnings-122555033.html\" data-ylk=\"slk:massive drops;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;massive drops&quot;}\" class=\"link  yahoo-link\" rel=\"nofollow noopener\" target=\"_blank\">massive drops<\/a> in their exports, the kingdom has been able to maintain flows and bring in hard currency.<\/p>\n<p class=\"yf-1fy9kyt\">Aramco\u2019s average selling price of its crude rose from $64.1 a barrel in the last quarter of 2024 to $76.9 a barrel. Oil prices have hovered around $100 a barrel so far this quarter.<\/p>\n<p>         Know More    <\/p>\n<p class=\"yf-1fy9kyt\">Even with Aramco\u2019s higher profits, the government said last week oil revenue had declined, which \u2014 along with higher state spending \u2014 contributed to the <a href=\"https:\/\/finance.yahoo.com\/economy\/policy\/articles\/saudi-quarterly-deficit-highest-since-123150413.html\" data-ylk=\"slk:widest budget deficit;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;widest budget deficit&quot;}\" class=\"link  yahoo-link\" rel=\"nofollow noopener\" target=\"_blank\">widest budget deficit<\/a> since 2018.<\/p>\n<p class=\"yf-1fy9kyt\">The dynamic may reflect the government forgoing some income from domestic oil sales because it had to boost fuel subsidies to maintain its cap on prices in the kingdom. It may also indicate that the higher royalty rate that Aramco pays on elevated crude prices didn\u2019t kick in because overall volumes were relatively lower due to the closure of Hormuz.<\/p>\n","protected":false},"excerpt":{"rendered":"The News Aramco\u2019s profit jumped in the first three months of the year after surging oil prices helped&hellip;\n","protected":false},"author":2,"featured_media":436199,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[20036,114,49628,85,46,6807,114994],"class_list":["post-436198","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-aramco","tag-business","tag-crude-prices","tag-il","tag-israel","tag-oil-prices","tag-strait-of-hormuz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/436198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=436198"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/436198\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/436199"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=436198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=436198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=436198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}