Saudi Arabia · Delayed Price · Currency is SAR Saudi Aramco Base Oil Company - Luberef Earnings Call Transcripts
Fiscal Year 2026
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Record net income and margins were achieved in H1 2026, driven by strong base oil pricing and operational excellence. Growth II project advanced, with shutdowns rescheduled to maximize profitability. Despite geopolitical and logistical challenges, financial flexibility and robust cash flow support continued investment and shareholder returns.
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Q1 2026 saw net income rise 16% year-on-year to SAR 258 million, driven by strong by-product margins despite lower sales volumes and compressed base oil margins. Guidance was revised to 1.15 million tons for the year, with improved crack margins expected in Q2.
Fiscal Year 2025
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2025 saw resilient financials despite a 15% sales volume drop from a major turnaround, with revenue at SAR 8.1 billion and net income at SAR 855 million. Crack margins improved, cost-saving initiatives delivered value, and 2026 guidance targets 1.25 million tons production.
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Q3 2025 saw strong operational and financial performance, with net income up 14% sequentially and robust crack margins despite lower sales volumes. Growth 2 project is on track, and new agreements are set to enhance margins and reduce costs.
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H1 2025 saw lower revenue and net income due to unplanned shutdowns and weaker byproduct margins, but base oil crack margins improved 6% year-over-year. CapEx and domestic sales focus remain strong, with Growth II project on track for early 2026 production.
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Q1 2025 saw strong safety performance, improved base oil margins, and stable sales volumes, though revenue, EBITDA, and net income declined year-over-year. Yanbu Growth II progressed to 42% completion, with CapEx and working capital on track, and operational guidance unchanged.
Fiscal Year 2024
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Operational excellence and strategic initiatives drove strong H1 2024 performance, with higher sales volumes and revenues but lower margins and net income year-over-year. Focus remains on cost control, asset utilization, and growth projects, while maintaining a robust dividend policy.