Saudi Aramco’s Profits Rise Despite Its Facilities Taking Repeated Hits. The Refining Business Surged 234%.

Saudi Aramco reported stronger third-quarter earnings Tuesday, with its refining business posting a sharp increase in profits as higher oil prices and the war with Iran continued to disrupt global energy markets.

The Saudi oil giant's adjusted net income rose 9% to $31.2 billion in the three months ended September, up from $28.6 billion a year earlier. The result exceeded analysts' median estimate of $30.66 billion, according to Aramco's latest earnings release.

The biggest increase came from its downstream business, which turns crude oil into gasoline, diesel and other petroleum products. Adjusted earnings before interest and taxes in the division jumped 234% from a year earlier to $10.3 billion, helped by stronger refining margins.

Refining margins measure the difference between what refiners pay for crude oil and what they earn from selling the finished products. They can rise when supplies of gasoline, diesel and other fuels become tighter, allowing refiners to charge more relative to the cost of crude.

Aramco's results come after months of disruption to energy production and shipping routes following the outbreak of the Iran war in February. Attacks on oil facilities and restrictions affecting major export routes have complicated the movement of crude and refined fuels, pushing up prices for businesses and consumers.

"Geopolitical uncertainty and attacks on key energy facilities continued to amplify the global energy supply crisis in the third quarter of 2026, with serious implications for global energy security," Aramco CEO Amin H. Nasser said in the company's earnings statement.

Aramco reported an average realized crude oil price of $95.20 per barrel during the quarter, compared with $70.10 in the same period last year. That represents an increase of nearly 36%, although higher prices have coincided with disruptions to the company's production and exports.

The company recorded net income of $36.3 billion, up from approximately $26.9 billion a year earlier. That increase was considerably larger than the rise in adjusted earnings because reported profit also benefited from the disposal of Aramco's interest in Malaysian refining and petrochemical joint ventures known as PRefChem.

The adjusted figure excludes certain items, providing a separate measure of earnings from the company's underlying operations.

Despite the difficult operating environment, Aramco generated $38.7 billion in cash from operating activities, compared with $36.1 billion a year earlier. Free cash flow increased to $28.2 billion from $23.6 billion, giving the company additional financial flexibility as it deals with higher costs and supply disruptions.

Saudi Arabia has relied heavily on Aramco's East-West Pipeline, which carries crude oil across the country to the Red Sea, allowing shipments to avoid the Strait of Hormuz. The narrow waterway between Iran and Oman is one of the world's most important oil transit routes and has faced serious disruptions during the conflict.

Aramco said the pipeline continued to provide flexibility in moving oil to international customers. The company is also considering additional overseas storage facilities and new export routes to reduce the risk of supply interruptions.

Nasser said its existing network had helped maintain deliveries despite attacks on energy infrastructure. The company has not provided a timetable for any additional export routes or storage facilities.

Several major production projects are also moving ahead. Aramco said crude production had begun at its Zuluf expansion project, while work continued on the second phase of its Jafurah gas development, the expansion of the Fadhili Gas Plant and the Dammam development project.

Alongside its energy investments, Aramco is expanding into artificial intelligence. On Nov. 1, the company and Saudi Arabia's Public Investment Fund announced the completion of a transaction giving Aramco a 49% stake in Saudi AI company HUMAIN.

The deal involves transferring AI-related assets and contributing approximately $2.6 billion in cash during 2026, according to a separate Aramco announcement.

HUMAIN plans to develop 3 gigawatts of AI data center capacity by 2030, although that remains a future target rather than completed infrastructure. The investment gives Aramco a position in the expanding market for AI computing while it continues spending on its core oil and gas operations.