Saudi Aramco Base Oil Company – Luberef (2223) Q1 2025 earnings summary

Executive summary

• Achieved industry-leading safety with zero recordable incidents, TRIR of 0.0, and ISO 45001 certification, maintaining over five years without a lost time incident and 97.6% mechanical availability in Q1 2025.

• Introduced new products (Bright Stock, Prima 110) and entered higher netback markets through commercial alliances, including S-OIL and MOTIVA.

• Recognized with first place in Saudi Capital Market Awards and Sultan Aldugaither Award for best IR program in the mid-cap category.

• Yanbu Growth II project advanced to 42% completion, with procurement delays being actively managed.

• Q1 2025 saw stable base oil sales volumes at 272,000 MT, revenue of SAR 2,128 million, and net income of SAR 222 million, reflecting a 7% year-over-year decline.

Financial highlights

• Revenue for Q1 2025 was SAR 2,128 million, down 2.5% year-over-year, with net income at SAR 222 million, down 7% year-over-year but up 6% sequentially.

• EBITDA for Q1 2025 was SAR 292 million, up from SAR 111 million in Q1 2024, and free cash flow reached SAR 292 million, up 163% year-over-year.

• Base oil crack margins rose 9% year-over-year to SAR 1,755/ton, near the 10-year average.

• Sales volume reached 272,000 MT, slightly above Q1 2024 but down 26% sequentially due to planned shutdown.

• Operating and free cash flow increased due to improved working capital management.

Outlook and guidance

• 2025 CapEx guidance unchanged at SAR 250–350 million, with total Yanbu Growth II CapEx expected at SAR 750 million.

• Full-year 2025 base oil volumes expected at 1.2 million MT, with domestic sales targeted at ~30% of total.

• HVGO supply from SAMREF expected to resume in Q2 2025, supporting operational flexibility.

• Working capital expected to remain stable for the rest of 2025.

• No change in 2025 operational or financial guidance.