Saudi Aramco Base Oil Company – Luberef (2223) Q1 2026 earnings summary

Executive summary

• Achieved strong and balanced Q1 2026 performance, with net income up 16% year-over-year to SAR 258 million, driven by strategic expansion into high-value GCC markets and robust operational safety, including over 44 million man-hours without lost time injury and zero TRIR.

• Revenue for Q1 2026 reached SAR 2,158.4 million, up from SAR 2,127.9 million year-over-year.

• Progressed Growth II project to 71% completion, targeting full delivery in H2 2026.

• Base oil sales volume was 240 thousand metric tons, down 12% year-over-year.

• Basic and diluted EPS rose to SAR 1.53 from SAR 1.32 year-over-year.

Financial highlights

• Net income reached SAR 258 million, up 16% year-on-year, despite a 12% decline in sales volumes.

• Total revenue for Q1 2026 was approximately SAR 2.2 billion.

• EBITDA for Q1 2026 was SAR 337 million, up from SAR 289 million in Q1 2025.

• Free cash flow was SAR 41 million, down 86% year-over-year due to higher capex and working capital movements.

• Cash balance increased from SAR 1,373 million to SAR 1,397 million during the quarter.

Outlook and guidance

• Full-year base oil sales target revised to 1.15 million metric tons, reflecting Q1 disruptions; domestic market targeted at ~30%.

• Growth II project on track for commissioning in H2 2026, with 71% completion as of Q1.

• Remaining turnaround expenses for the year estimated at SAR 90–100 million.

• Capex for Yanbu Growth II project estimated at 300-350 million.

• Domestic base oil price premiums expected in the range of 375-750/MT; export premiums to be maximized.