Kuwait reports record-high oil refining income

Kuwait’s oil refining revenues have climbed to their highest in the country’s history as the government pushed ahead with restructuring its hydrocarbon sector to upgrade efficiency and trim operational costs.

Net profit at state-owned Kuwait National Petroleum Company (KNPC), which manages the Gulf emirate’s refining industry, broke the 1-billion-dinar barrier for the first time since the business was launched nearly 65 years ago.

Profit stood at KD1.12 billion ($3.6 billion) during the 2025-26 fiscal year, which ended on March 31, KNPC said in its annual report.

Sales value swelled to its highest level during the period at KD9.25 billion, the report said, adding that export volume increased to nearly 35 million tonnes, from 34 million tonnes during the previous fiscal year.

Production at KNPC’s two main refineries, Al-Ahmadi and Mina Abdullah, came to nearly 750,000 barrels per day.

“Refining output was below the company’s target mainly because of technical issues and regional geopolitical tensions,” the report said.

The report did not include production at the southern Al-Zour refinery, which has capacity of 615,000 bpd and had been managed by the Kuwaiti Integrated Petroleum Industries Company (KIPIC).

KIPIC was dissolved in June and acquired by KNPC in line with a decision by the supreme petroleum council as part of overhaul plans approved three years ago.

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KIPIC has been merged into KNPC’s operations inside and outside Kuwait.

In a statement published by the official gazette, KNPC said the move resulted in an increase in its capital to KD2.6 billion.

Kuwait Petroleum Corporation (KPC), which owns KNPC and other state oil firms, last month reported its highest annual profit in three years after a sharp cut in capital investment before the outbreak of the US-Iran conflict.

KPC’s net earnings rose to KD2.2 billion for the 2025-26 fiscal year ended March 31, nearly a month after the conflict flared.