Saudi Arabian Oil Company (2222) Q1 2026 earnings summary

Executive summary

• Achieved adjusted net income of $33.6 billion in Q1 2026, up from $26.6 billion year-over-year, reflecting strong operational flexibility and resilience amid the largest-ever global energy supply shock and complex geopolitical conditions.

• Leveraged the East-West Pipeline, which operated at maximum capacity of 7.0 million barrels per day, and local supply chain to restore operations quickly after attacks, minimizing downtime and supply disruptions.

• Maintained maximum sustainable capacity and flexibility, with total hydrocarbon production at 12.6 million barrels of oil equivalent per day, up 0.3 mmboed year-on-year.

• Continued progress on major projects, including Jafurah Phase 2, and increased gas growth targets to support long-term gas and downstream growth.

• Demonstrated robust contingency planning and strategic investments to ensure operational continuity and mitigate disruptions.

Financial highlights

• Q1 2026 adjusted net income reached $33.6 billion, up 26% year-on-year, with net income at $32.5 billion and revenue at $124.6 billion.

• Free cash flow was $18.6 billion, impacted by a $15.8 billion working capital build, with $34.4 billion excluding working capital movement, up 62% year-on-year.

• ROACE stood at 20.7%, about double the IOC average.

• Cash position of $75.2 billion and gearing ratio of 4.8%, sector-leading but up from 3.8% at year-end 2025.

• Base dividend declared at $21.9 billion, up 3.5% year-on-year.

Outlook and guidance

• Expect continued elevated refining and chemical margins in Q2 due to tight physical markets and robust demand growth.

• Increased gas growth target, aiming for around 80% sales gas production capacity growth by 2030.

• Long-term strategy remains on track, with major projects progressing and significant gas and downstream growth targeted by 2030.

• Performance-Linked Dividends mechanism in place to share further upside with shareholders.

• Continued focus on leveraging infrastructure and contingency planning to navigate disruptions.