Saudi Aramco Base Oil Company – Luberef (2223) Q2 2026 earnings summary

Executive summary

• Achieved record net income of 992 million in H1 2026, a 113% year-over-year increase, driven by historic base oil crack margins and operational excellence.

• Celebrated 50th anniversary and received Investor Relations Program of the Year 2025 Mid-Cap award for the second consecutive year.

• Maintained zero Total Recordable Incident Rate (TRIR) and over 44.4 million safe man-hours, with 100% mechanical availability.

• Advanced localization and sustainability initiatives, including agreements to support local manufacturing and carbon market development.

• Growth II project reached 73% completion, with shutdown rescheduled to October 2026 to capitalize on strong market conditions.

Financial highlights

• H1 2026 net income was 992 million, up 113% from H1 2025, with EBITDA at 1,184 million and free cash flow at 1,064 million, both showing significant year-over-year growth.

• Q2 2026 net income reached 734 million, up 199% from Q2 2025.

• H1 2026 revenue was 5,577 million, up from 4,377 million in H1 2025.

• Closed H1 2026 with 1,750 million in cash after 302 million in capex and 589 million in dividends.

• Free cash flow increased by 346% year-over-year, supported by favorable working capital movement.

Outlook and guidance

• Base oil production for 2026 projected at 1.15 million metric tons, with ~30% targeted for the domestic market.

• CapEx guidance for Growth II remains 300–350 million for 2026, with 180–230 million expected in H2 and 100–150 million in 2027.

• Interim dividend of 4/share approved for H1 2026.

• Crack margins expected to moderate in H2 due to seasonal demand reduction, but remain above pre-war levels.

• Focus remains on operational excellence, advancing strategic initiatives, and adapting to market dynamics.