Saudi Aramco Base Oil Company – Luberef (2223) Q3 2025 earnings summary

Executive summary

• Achieved over 41.1 million safe man-hours without a lost-time injury and maintained a zero total recordable incident rate year-to-date, with mechanical availability at 98.9%.

• Expanded customer base via a new ultra-low sulfur diesel sales agreement with Saudi Aramco and optimized logistics through a contract of affreightment with Bahri Chemicals, reducing freight costs by double-digit percentages.

• Growth II expansion project reached 60% completion, with procurement activities at 71% and plans to accelerate to 70%-75% by year-end 2025; project completion targeted for early 2026.

• Successfully produced Group III base oil samples for testing, aligning with commercial quality standards, and launched Group 3 base oil slating program.

• Prepared for the largest turnaround in company history, including maintenance and construction to support reliability and expansion.

Financial highlights

• Q3 2025 net income was SAR 279 million, up 23% year-over-year and 14% sequentially; EBITDA reached SAR 359 million, up 28% year-over-year.

• For the first nine months of 2025, net income was SAR 746 million (down 2% year-over-year), EBITDA SAR 1,051 million, and free cash flow SAR 604 million (down 43%).

• Q3 2025 revenue was SAR 2,157 million, with nine-month revenue at SAR 6.53 billion.

• Cash balance at the end of Q3 stood at SAR 1.17 billion, a modest SAR 17 million decrease from the start of the year.

• Base oil crack margins reached SAR 1,994/MT in Q3 2025, up 15% year-over-year, and SAR 1,884/MT for the first nine months, up 9% year-over-year.

Outlook and guidance

• Production targets remain unchanged for the rest of 2025, with base oil sales volume revised to 1.05 million MT due to shutdowns.

• CapEx guidance for Growth II project revised to SAR 200-250 million for 2025, down from SAR 250-350 million, due to procurement delays.

• Group II base oil prices in Asia-Pacific expected to remain stable over the next 9-12 months; high sulfur fuel oil prices may face further pressure.

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

• Further guidance on diesel supply agreement and Growth II commissioning to be provided by year-end.