Aramco: Earnings call highlights continued resilience

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Aramco: Earnings call highlights continued resilience

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Aramco

Earnings call highlights continued

resilience

Reiterate Rating: BUY | PO: 34.50 SAR | Price: 27.64 SAR

Reiterate Buy post a solid set of 1Q results 12 May 2026

We update our model post 1Q26 results (see 1Q first take) to reflect: 1) better than Equity

expected upstream EBIT, which came 7% higher than BofAe, 2) as well as lower taxes.

As a result, our FY26E net income has increased by c.3% (PO of SAR 34.5 unchanged).

Key ChangesWe are 12% higher than FY26E consensus net income due mainly to a higher Brent price

forecast: we forecast US$93/bbl in FY26E higher than consensus median of US$85/bbl. (SAR) Previous Current

Aramco’s earnings call highlighted continued resiliency in uncertain macro times. We 2026E EPS 2.07 2.13

reiterate Buy given Aramco's ability to increase production in a limited timeframe 2028E EPS 2.13 2.14

(+2mb/d in c.3 weeks) and low costs. Shares trade on a 2027E PE of 13x, c.20% discount 2026E DPS 1.40 1.41

to average since IPO while offering an attractive 2027E/28E dividend yield of 6%.

Sashank Lanka >>

Multiple levers highlighting business resiliency ResearchMerrill LynchAnalyst(DIFC)

1) Company continues to utilise its East West pipeline to transfer crude volumes to the +971 4 425 8231 sashank.lanka@bofa.com

west coast, which are then utilised by refineries domestically or exported, 2) taking

Christopher Kuplent >>

advantage of the elevated refining margin environment (diesel and jetfuel specifically), Research Analyst

west coast refineries are focused on exports while east coast refineries are focused on MLI (UK) +44 20 7995 8222

domestic consumption, 3) Aramco has significant levels of storage domestically christopher.kuplent@bofa.com