Equities
Aljazira Capital: Higher Crude Oil Prices to Bolster Saudi Aramco's Q1 Profitability
Aljazira Capital expects Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco, to see strong topline growth and improved profitability in the first quarter, bolstered by higher crude oil prices.Aramco is anticipated to report a 13.8% year-over-year jump in net income, after minority, to 108.8 billion Saudi riyals, while revenue is seen growing 6% to 455.3 billion riyals, according to a Wednesday note.For full-year 2026, net income and revenue are projected to increase 22.6% and 14.1% on an annual basis, respectively, to 427 billion riyals and 1.908 trillion riyals."We expect higher crude oil prices this year and flexibility to divert exports from east to west coast to reflect positively on Aramco's revenue and earnings in FY26E," the research firm said. "Our estimates assume an average oil price of around USD 86/bbl, about 27%. However, total hydrocarbon output is projected at 12.8 mmboed, including crude oil production of 9.4 mbpd. Our assumptions are based on energy supply routes and production level returning to normalcy by Q3-26, while oil prices will continue to hold certain geopolitical premium throughout the year."
SASE:2222