Refining profits surge combined with soaring oil prices, Saudi Aramco's Q3 profit rises 9%, maintains US$21.9 billion dividend.

Saudi Aramco's third-quarter profit rose 9%, driven by a sharp jump in refining profits as the Iran war pushed up oil prices. Adjusted net profit for the quarter (the three months to September) rose to US$31.2 billion from US$28.6 billion a year earlier, according to a company statement, above analysts' estimate of US$28.7 billion. The company kept its base dividend at US$21.9 billion on a quarter-on-quarter basis, a payout that is crucial to Saudi public finances. The profit increase is a boon for the kingdom, which is under pressure from repeated Houthi attacks from Yemen and facing growing scrutiny over the robustness of its oil revenues. Aramco, the world's largest crude exporter, is the backbone of Saudi industry energy sales revenue and hefty dividends underpin the country's vast spending needs. Aramco said oil selling prices rose about 35% year on year in the quarter; earnings before interest and taxes (EBIT) at its downstream segment, which includes refineries and trading, more than tripled to a record of more than US$10 billion. Global oil majors from BP to ExxonMobil and Chevron all benefited from surging refining margins this quarter. As escalating Iranian attacks on shipping through the Strait of Hormuz raised supply concerns, London Brent crude rose more than 40% in the quarter, averaging over US$90 a barrel. By mid-September the global benchmark had breached US$100 a barrel and climbed further last month on fears that the US-Iran war could reignite. In September, Aramco increased crude loadings from Ras Tanura, its main Gulf export hub, to recapture market share among Asian buyers. It had been forced to rely on the Hormuz route after an attack temporarily halted the East-West pipeline, disrupting the alternative Red Sea route. In recent weeks, Houthi attacks have targeted Aramco's energy infrastructure, including Yanbu, the terminus of the East-West pipeline, refineries in western Saudi Arabia, a major oilfield and even the company's headquarters. Despite the attacks, Saudi Arabia has continued to ship export crude to the market. Aramco's average crude selling price in the third quarter was about US$95.20 a barrel, versus US$70.10 a year earlier. Total liquids production fell about 10% to 8.7 million barrels a day, while gas output declined 2.6%. Gearing, a measure of leverage, fell to 5.5% at the end of September from 6.2% at the end of June. Free cash flow the money left from operating activities after investment and expenses was US$28.2 billion, enough to cover the dividend.