The performance of Saudi Arabia’s energy sector is no longer tied solely to oil price movements. Financial results for the first half of 2026 showed an increasing diversity in the drivers of performance, with companies listed on the Saudi Exchange (Tadawul) benefiting from improved activity in maritime transport, refining, petrochemicals, and energy-related services, alongside the continued financial strength of Saudi Aramco. This diversification was clearly reflected in the companies’ combined results, with profits surging 39 percent in the first half to $66.9 billion (SAR 250.9 billion), compared with $48.2 billion (SAR 180.6 billion) in the same period of 2025, an increase of $18.75 billion (SAR 70.3 billion). The improvement was not limited to the first six months. In the second quarter alone, the sector recorded a 49.7 percent increase in profits to $33.8 billion (SAR 127 billion), compared with $22.6 billion (SAR 84.8 billion) in the same quarter a year earlier. Revenue also rose 24 percent to $128 billion (SAR 480.35 billion), compared with $103.37 billion (SAR 387.65 billion). More Than One Growth Driver These figures reflect the expanding value chain of Saudi Arabia’s energy sector. Benefits from the oil cycle are no longer limited to production and sales, but have extended to transport, refining, petrochemicals, and supporting services. Mohamed Hamdy Omar, CEO of G World, told Asharq Al-Awsat that 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. This reflects the expanding value chain of the Kingdom’s energy sector. He explained that the first driver was higher oil, refined product, and chemical prices, along with improved margins. This was reflected directly in Saudi Aramco’s results, even as some sales volumes declined. The second driver is energy-related transport and logistics services, with Bahri providing a clear example. The company benefited from higher global freight rates and increased operational activity, particularly in oil transportation, sending its first-half profit up 420 percent to SAR 4.8 billion ($1.28 billion), compared with SAR 940 million ($250.6 million) during the same period in 2025. In the second quarter alone, Bahri’s profit rose to about SAR 2.75 billion ($733.3 million), benefiting from strength in the maritime transport market and increased demand for tankers. This demonstrates that economic value in the energy sector is generated not only by the price of a barrel, but also by the supply chain and related services. The third driver is improved operational efficiency and refining and petrochemical margins. This was particularly evident in the performance of Rabigh Refining and Petrochemical Co. (Petro Rabigh), which returned to profitability in the first half, recording about SAR 4 billion ($1.07 billion), compared with a loss of nearly SAR 2 billion in the same period of the previous year. In the second quarter, the company posted a profit of SAR 2.66 billion ($709.3 million), compared with a loss of SAR 1.37 billion ($365.3 million) in the second quarter of 2025. The improvement was supported by higher plant operating rates, increased sales volumes, improved refined and petrochemical product margins, and lower financing costs. Omar said these developments demonstrate that Saudi Arabia’s energy sector has become more integrated, bringing together production, refining, petrochemicals, drilling, services, transport, and logistics. As a result, the factors affecting its results have become more diverse than simply movements in oil prices. Aramco... The Largest Driver Despite the broadening sources of growth, Aramco still accounts by a wide margin for the largest share of the sector’s combined results. The company reported net profit of SAR 241.6 billion ($64.4 billion) in the first half of 2026, up 33.3 percent from SAR 181.3 billion ($48.3 billion) in the same period of the previous year. It therefore accounted on its own for about 96 percent of the total profits of the six companies included in the results, which amounted to about SAR 251 billion ($66.9 billion). This means that diversification in performance drivers has become more apparent, but it has not yet resulted in a fundamental change in the concentration of results around the sector’s largest company. Structural Improvement or Temporary Cycle? Omar said interpreting the results requires distinguishing between sustainable structural improvement and cyclical or exceptional factors that contributed to amplifying growth rates during the first half. In his assessment, part of the improvement reflects ongoing structural changes, particularly as the Kingdom expands its energy infrastructure, increases investment in gas, refining, and petrochemicals, and develops production, transport, and energy-related service capabilities. In this context, Aramco continues to develop a range of projects that strengthen its long-term revenue base, including increasing production at the Zuluf field, expanding the Fadhili Gas Plant, and advancing development phases at the Jafurah field. However, the record growth rates posted by some companies should not be assumed to continue at the same pace. Omar noted that Bahri’s significant second-quarter improvement was largely linked to higher global freight rates, geopolitical conditions, and increased demand for tankers. It would therefore be unrealistic to regard current growth rates as permanently repeatable. Part of this also applies to Petro Rabigh, as the comparison is with the second quarter of 2025, which was affected by comprehensive scheduled maintenance that lasted about 60 days and led to lower production and sales. Therefore, part of the growth currently recorded is attributable to the low comparison base, rather than solely to new organic growth. Divergence Within the Sector Not all energy companies are moving in the same direction, reflecting differences in the nature of their activities and sources of income. ADES faced pressures related to the suspension of some rig operations, while Arabian Drilling swung to a loss in the second quarter, at a time when transport and refining companies benefited from more supportive operating and market conditions. This divergence means that the sector’s overall positive picture does not indicate that all of its components have improved to the same degree. The strength of the combined results must also be viewed in light of the heavy concentration in Aramco. What Awaits the Sector in the Second Half? Omar expects Saudi Arabia’s energy sector to maintain a strong level of performance during the second half of 2026, but rules out a repeat of the growth rates recorded during the first six months. This outlook is based on the continuation of several supportive factors, foremost among them strong energy prices and refined product margins, along with ongoing disruptions to supply chains and maritime transport, as well as major investment projects within the Kingdom. At the same time, the geopolitical factor remains a double-edged sword for the sector. Continued disruptions could sustain an oil price premium and support freight rates and the margins of some products, but any rapid easing could lead to lower freight rates, narrower refining margins, and lower prices for some energy products. Omar therefore believes that the real test for the sector over the next two quarters will not be revenue growth alone, but the quality and sustainability of that growth, and companies’ ability to preserve their operational gains independently of exceptional factors.
