Saudi Aramco Base Oil Company – Luberef (2223) Q3 2026 earnings summary

Executive summary

• Record-high 9M base-oil crack margins and disciplined execution supported record financial results.

• Safety indicators included zero total recordable cases, 45.1 million hours without a lost-time injury, and 99.3% mechanical availability.

• Shipping disruptions delayed sales timing, but management said volumes shifted between quarters rather than being lost; deliveries continued with freight pressures mitigated through logistics management and strategic contracts.

Financial highlights

• 9M revenue was SAR 8.353bn, up 28% YoY; EBITDA was SAR 1.807bn, up 87%; net income was SAR 1.528bn, up 105%.

• 9M base-oil sales volume was 793,000 MT, down 10% YoY from 879,000 MT amid logistical disruptions.

• Q3 net income was SAR 536m, up 92% YoY; EBITDA was SAR 623m, up 73%.

• 9M EPS was SAR 9.08 versus SAR 4.43; Q3 EPS was SAR 3.19 versus SAR 1.66.

Outlook and guidance

• Q4 base-oil sales forecast is 240,000–260,000 MT; FY 2026 volume forecast is 1.04m MT, with the domestic market targeted at ~30% of total volume.

• Growth II shutdown moved from October 2026 to H1 2027; the combined outage scope is intended to complete remaining project work and support start-up.

• 2026 Growth II CapEx guidance fell to SAR 250–300m; remaining turnaround CapEx is SAR 25–30m, while sustaining CapEx guidance remains unchanged.

• Domestic base-oil premiums are expected at SAR 375–750/MT; feedstock prices are expected to track Singapore 380 CST HSFO 3.5%.

• Base-oil prices are expected to ease from current levels but remain elevated; management does not guide crack margins and expects to provide 2027 volume guidance in February.