Saudi Arabia’s state oil company Saudi Aramco reported a 44% rise in profit in the second quarter of the year despite instability in the Strait of Hormuz and Bab al-Mandab. In the three months from April to June, Aramco recorded net profit of $32.69 billion, according to information published on August 4. Higher prices for crude oil, refined fuels and chemical products played a major role in the profit increase.

Saudi Arabia’s oil-sector activity, however, declined during the same period. Official statistics showed the country’s oil-sector activity fell 24.7% in the second quarter compared with the same period a year earlier. As a result, Saudi Arabia’s real gross domestic product declined 4.8% in the second quarter.

The profit disclosure came as oil production and transport were being disrupted after Iran closed the Strait of Hormuz and energy infrastructure in the Gulf region was attacked. Yemen’s Houthi group also declared a blockade against Saudi Arabia in Bab al-Mandab, creating limits on use of the Saudi east-west pipeline extending to the Red Sea. Instability along both waterways has added pressure to global energy supplies.