Saudi Energy Profits Surge as Growth Spreads Beyond Oil

Saudi Arabia’s energy sector is producing strong returns without relying solely on movements in oil prices. Companies listed on Tadawul increased combined first-half profits by 39% to $66.9 billion, or 250.9 billion Saudi riyals, from $48.2 billion a year earlier.

The increase accelerated in the second quarter. Sector profits rose 49.7% to $33.8 billion, while revenue climbed 24% to $128 billion. The results reflected stronger activity across maritime transport, refining, petrochemicals and energy-related services, alongside the continued financial strength of Saudi Aramco.

Mohamed Hamdy Omar, chief executive of G World, told Asharq Al-Awsat that the key feature was the number of growth drivers behind the results. Higher prices for oil, refined products and chemicals, together with improved margins, supported the sector. Those gains benefited Aramco even as some sales volumes declined.

Transport and logistics provided another source of growth. Bahri benefited from higher global freight rates and increased oil-transport activity, lifting first-half profit to 4.8 billion riyals, or $1.28 billion, from 940 million riyals in the previous year. Second-quarter profit reached about 2.75 billion riyals as tanker demand remained strong.

Refining and petrochemical margins also improved. Petro Rabigh returned to profit in the first half, recording about 4 billion riyals, compared with a loss of nearly 2 billion riyals in the same period a year earlier. The results point to value being generated across the energy supply chain, not only through the sale of crude oil.

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the most notable aspect of the sector’s first-half results was not the increase in profits itself, but the multiple growth drivers behind this performance