Saudi Aramco Base Oil Company – Luberef (2223) Q2 2025 earnings summary

Executive summary

• Achieved over 40.1 million man-hours without lost time injury and maintained 98.4% mechanical availability, with operational excellence continuing for over five years.

• Implemented the Internal Control over Financial Reporting (ICFR) program, enhancing governance and compliance.

• Advanced strategic priorities, notably the Growth II project, with SAR 221 million invested in H1 2025, the highest in five years.

• Expanded domestic and regional presence, including a new term supply agreement in Egypt and focus on local sales.

• Maintained strong logistics performance and signed a fixed-rate shipping agreement, reducing freight costs.

Financial highlights

• H1 2025 revenue was SAR 4,377 million, down from SAR 4,914 million year-over-year, with net income at SAR 467 million, a 13% decrease.

• EBITDA for H1 2025 was SAR 609 million, down from SAR 707 million in H1 2024; free cash flow dropped to SAR 238 million, a 73% decrease.

• Base oil crack margins rose 6% year-over-year to SAR 1,828/ton, exceeding the 10-year historic average.

• Closing cash balance at H1 2025 was SAR 1,815 million, down SAR 372 million from the start of the year.

• Q2 2025 net income was SAR 245 million, EBITDA SAR 320 million, and revenue SAR 2,249 million.

Outlook and guidance

• 2025 base oil production guidance revised to 1.05 million metric tons due to unplanned shutdowns.

• Domestic sales targeted to account for 30% of total volume to reduce exposure to external market volatility.

• Full-year CapEx plan remains SAR 250–350 million, with H1 2025 CapEx at SAR 113 million for Growth II.

• Growth II project to enter construction-intensive phase in H2 2025; production from new facility expected January 2026.

• Yanbu turnaround scheduled for mid-November to December 2025.