Business
As Hormuz dangers force the pipeline to maximum capacity, Aramco’s Q1 profit soars by 25%.
With the national oil giant’s East-West crude pipeline operating at full capacity to lessen the impact on supply, Saudi Aramco announced a 25% increase in first-quarter profit on Sunday, demonstrating its endurance as US-Iran war tensions restrict ships across the Strait of Hormuz.
In the three months ending March 31, the largest oil exporter in the world made a net profit of $32.5 billion, exceeding the $30.95 billion LSEG consensus projection.
Due to increased pricing and sales volumes of both crude oil and refined and chemical products, total income increased by about 7% to $115.49 billion over the previous year.
Aramco increased petroleum flows from its east coast to the Red Sea port of Yanbu in response to Iran’s blockade of shipping via the vital Hormuz strait amid the U.S.-Israeli conflict, which has reduced energy supply and caused prices to soar.
NASSER SAYS, “RELIABLE SUPPLY IS CRITICAL.”Amin Nasser, CEO of Aramco, stated that “reliable energy supply is critical” and that “our East-West Pipeline, which reached its maximum capacity of 7.0 million barrels of oil per day, has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock.”
About 2 million barrels per day can be supplied by the pipeline to refineries on the west coast of Saudi Arabia, leaving 5 million barrels per day for export.
Following Iran’s blockade of Hormuz, a waterway that supplied one-fifth of the world’s oil supply before to the conflict, Saudi Arabia reduced its output by two million barrels per day. Heavy grades are limited on the line, which primarily carries Arab Light and some Arab Extra Light.
The company’s median analyst forecast of $31.16 billion was exceeded by Aramco’s adjusted quarterly net profit of $33.6 billion. $1.06 billion in non-operational accounting items are subtracted from the total.
Capital expenditures dropped dramatically from $13.4 billion in the fourth quarter to $12.1 billion in the quarter, down from $12.5 billion a year earlier. This year, Aramco planned to spend between $50 and $55 billion on major projects.
Q1 HIGHER DIVIDEND ANNOUNCED
In keeping with the projected total payouts of $87.6 billion for 2026, Aramco announced a base dividend of $21.9 billion for the first quarter, up 3.5% year over year and payable in the second quarter.
In 2023, it also implemented a free cash flow-based performance-linked dividend.
Aramco’s dividends are a major source of funding for the Saudi government’s domestic expenditures and budget deficits. The Public Investment Fund controls 16% of the corporation, while the government directly owns over 81.5%.
Due to a $15.8 billion increase in working capital, free cash flow decreased to $18.6 billion from $19.2 billion in the previous year. Aramco’s gearing – measuring its debt compared to equity – rose to 4.8% at March 31 from 3.8% at the end of 2025.
Business
Pakistan sees 66pc drop in terrorist attacks over five weeks: Report
The security forces have conducted effective operations in Khyber Pakhtunkhwa and Balochistan which have resulted in a steep drop in the number of terrorist strikes.
The Pakistan Institute for Conflict and Security Studies (PICSS) said in a new report that terrorist assaults had fallen by about sixty-six percent in a five week period.
The report claimed attacks reduced to 21 between October 16 and 22, from 61 registered between September 18 and 24.
There was also a week-on-week drop of 38 per cent in militant attacks from October 16-22. In such attacks, the number of people injured fell from 20 in the previous week to 11 in the same period, a fall of 45 percent.
PICSS said security forces have conducted 10 operations in which 33 insurgents were killed.
The research also looked at the effect of an internal leadership struggle in Fitna al-Hindustan and changes in the propaganda approach of Fitna al-Khawarij on the militant scene.
The data show that insurgent activity has gone down throughout the review period, but security challenges continue in regions of the country.
Business
FinMin says Pakistan has sufficient oil, energy supplies until Nov
Finance Minister Muhammad Aurangzeb said that Pakistan’s crude oil and other energy supplies are satisfactory. He said the government has made sufficient provisions to cover the country’s energy needs till November and further efforts are being taken to secure supply during winter.
Aurangzeb remarked while addressing a ceremony at a private university in Lahore that Pakistan has not had an energy shortage and there were no queues at gas stations or law and order issues due to an energy crisis.
He did acknowledge, however, that more had to be done to satisfy the country’s gas and liquefied natural gas (LNG) needs.
Talking about the economic performance of the country, the finance minister said that the information technology (IT) export services of Pakistan increased from one billion dollars to 4.6 billion dollars. “We expect IT exports to reach $5.5 billion in the current fiscal year,” he continued.
Aurangzeb said foreign exchange reserves were sufficient to cover more than three months of imports and had reached a record high. He recalled that at one time the reserves had dropped to the equivalent of only two weeks’ imports.
Pakistan’s credit rating has improved three times since April last year and the administration had taken major steps to recover access to international financial markets, he said.
Pakistan carried out a private placement in April this year, tapped the international markets by the issuing of Panda bonds and issued bonds worth three billion euros in the first week of September, the minister said.
Investors from Asia, the Middle East, Europe and the United States showed interest, he said, adding that orders received from investors for Pakistan’s euro bonds were twice the amount offered.
Aurangzeb also said that international investors were reviewing Pakistan’s economic outlook after its interaction with the International Monetary Fund (IMF). The current IMF program is due to expire in October next year, he noted.
On energy supplies, the minister said Pakistan had taken adequate measures for energy procurement and supplies in spite of regional crises. Arrangements were made to meet requirements until November and preparations were in hand for the winter season.
The finance minister said the administration has opted for targeted subsidies instead of blanket subsidies so that the assistance reaches the deserving part of the community.
He said that motorbikes, three wheelers and automobiles with engines below 800cc were given targeted incentives. So far, the relief had reached around 12 million distinct beneficiaries, while an estimated 40 to 50 million people across the country had benefited altogether.
“Pakistan is continuing structural reforms along with efforts to maintain economic stability, and reforms have moved beyond the planning stage and are now being implemented,” Aurangzeb added.
Business
Gold prices drop for fifth day as global rates fall below $4,000
Gold prices in Pakistan continued to tumble on Saturday, recording a fifth straight day of losses as international bullion prices fell below the critical $4,000 per ounce threshold.
The All Sarafa Association said the continued decrease drove gold to a five-month low in both domestic and international markets.
In the local market, the price of 24-carat gold declined by Rs2,500 per tola to Rs422,036. The price of 10 grams also decreased by Rs2,144 to Rs361,686.
The current cut is the latest in a run of sustained deterioration in bullion prices with the domestic market mirroring the slide in foreign rates.
World prices
International gold prices also saw another downturn, dropping by $25 per ounce to $3,995. The move sent bullion below the psychologically important $4,000 barrier, boosting pressure on local prices.
Gold prices fell for the fifth consecutive day in global and domestic markets. The group said the latest numbers “show the scale of the recent retreat” with prices dropping to their lowest in five months.
The jewellery markets in Pakistan observe the international bullion movements closely as global price changes affect local rates, alongside currency fluctuations and other market considerations.
Silver drops
Also prices of silver also came down in domestic trade. Silver prices decreased by Rs7 per tola to Rs5,858.
The simultaneous fall in gold and silver is a reflection of the wider weakness seen across the local precious metals market.
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