Aramco: Robust 1Q supported by solid upstream; focus now on 2Q volumes

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Aramco: Robust 1Q supported by solid upstream; focus now on 2Q volumes

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Aramco

Robust 1Q supported by solid upstream;

focus now on 2Q volumes

Maintain Rating: BUY | PO: 34.50 SAR | Price: 27.42 SAR

Clean net income higher than BofAe and consensus 11 May 2026

Aramco’s 1Q26 adjusted net income (including minority interests) came in at Equity

US$33.6bn, 13% higher than BofAe of US$29.7bn and 8% higher than consensus of

Sashank Lanka >>

US$31.2bn. Net income beat vs BofAe was driven by: 1) Adjusted EBIT at US$60.11bn, Research Analyst

5% higher than BofAe of US$57.35bn, 2) lower income taxes / Zakat at US$26.6bn vs Merrill Lynch (DIFC) sashank.lanka@bofa.com

BofAe: US$28bn. Management commentary focused on infrastructure readiness to

Christopher Kuplent >>

transfer crude to the West Coast of Saudi both to refineries domestically as well as for Research Analyst

exports. More details expected on earnings call today at 1 pm UK. We maintain our Buy MLI (UK) christopher.kuplent@bofa.com

rating.

Abhishek Kumar >>

Research Analyst

Merrill Lynch (DIFC)Upstream EBIT 7% above BofAe, downstream miss abhishek.kumar29@bofa.com

Upstream adjusted EBIT of US$54.2bn was up 13% q/q, 5% y/y and came 7% higher

than BofAe. Downstream adjusted EBIT of US$5bn was below BofAe of US$6.8bn. FCF

of US$18.6bn came in 10% lower than BofAe of US$20.7bn driven by US$15.8bn of

working capital build. 1Q26 base dividend of US$21.9bn, came in-line with BofAe. 1Q26 Stock Data

capex of US$12.1bn, was 9% lower than BofAe: US$13.3bn. The company announced Price 27.42 SAR

the resumption of its US$2-3bn share buyback program. Price Objective 34.50 SAR

Multiple initiatives focused on infrastructure readiness DateInvestmentEstablishedOpinion 07-Apr-2026A-1-7