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

Executive summary

• Achieved over 40.1 million safe 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, including SAR 113 million for Growth II.

• Expanded regional presence, especially in Africa, and strengthened local sales in alignment with national industrial goals.

• Resumed HVGO supply in Q2, improving base oil production efficiency and operational flexibility.

Financial highlights

• H1 2025 revenue was SAR 4,377.1 million, down from SAR 4,913.6 million year-over-year; net income was SAR 466.7 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 from SAR 879 million.

• 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 715.2 million, down from SAR 735.2 million at year-end 2024.

• Dividend of SAR 518.2 million (SAR 3.08 per share) was approved and paid in April 2025.

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.

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

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

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