Saudi Aramco reported a jump in second-quarter profit, following a period of severe disruption through the Strait of Hormuz amid the sprawling Middle East conflict.

The world’s largest oil company posted adjusted net income of 125.2 billion Saudi riyal ($33.4 billion) over the April to June period, up 33% year-on-year and beating analyst expectations of $31.59 billion.

The results come as oil supermajors have reported blowout quarterly profits, benefitting from higher fossil fuel prices amid hostilities between the U.S. and Iran.

The more than five-month-old conflict, which was already expanding beyond its main fronts, has embroiled further countries in the Middle East in recent days, notably the likes of Iraq and Egypt.

Aramco has responded to the Iran war by leveraging its 1,200-kilometer (746 miles) East-West pipeline to the Red Sea, bypassing the Strait of Hormuz, to maintain exports at a maximum capacity of 7 million barrels per day.

Key highlights from Q2:
• Cash flow from operating activities came in at $25.4 billion in the second quarter.
• Gearing ratio of 6.2% at the end of June, compared to 4.8% at the end of the first quarter.
• Aramco said it continues to utilize its East-West pipeline to increase supply flexibility.

“Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by capitalizing on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West Pipeline, storage capacity, and export terminals,” Aramco President and CEO Amin H. Nasser said in a statement.

“That enabled us to sustain production and exports while advancing key projects, despite the challenging regional environment,” he added.

Aramco’s board said a second-quarter base dividend of $21.9 billion would be paid over the next three months.

The oil behemoth said the sharp increase in second-quarter revenue was primarily due to higher prices of refined and chemical products and crude oil, noting this was partially offset by lower volumes sold of crude oil and refined and chemical products.

Aramco’s chief executive said the ongoing geopolitical crisis “continues to aggravate the biggest supply shock in history,” noting the world has lost more than 2.6 billion barrels of oil destined for industries such as agriculture, semiconductors, automotive, chemicals and manufacturing.

Speaking on a call with analysts following the announcement of results, Nasser said that the company’s East-West pipeline and global inventories had helped to alleviate this shock, lowering the net loss to around 1.8 billion barrels.

However, even if the Strait of Hormuz were to reopen today, Nasser warned it would take up to 18 months at an average rate of 2.1 million barrels per day to replace depleted inventories.

Trump: U.S. oil majors making ‘too much money’
Stateside, President Donald Trump on Monday lashed out at U.S. oil majors Exxon Mobil and Chevron for making “too much money” off higher fuel prices amid the Iran war, reiterating his demand for lower prices at the pump.

“They’re making too much money based on a shortage,” Trump told reporters at the White House. “I don’t like it.”

Exxon’s second-quarter profits more than doubled to $14.5 billion compared to a year ago, while Chevron’s earnings soared by nearly 400% to $12 billion compared to $2.5 billion in the same period last year. CNBC has reached out to Exxon and Chevron for comment.

Source: CNBC