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Saudi Aramco Base Oil Company – Luberef (2223) investor relations material
Saudi Aramco Base Oil Company – Luberef Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved the largest turnaround in company history, involving 7,000 personnel and 900 assets, with zero total recordable incident rate for six consecutive years and over 43 million man-hours without a lost time injury.
Extended feedstock allocation for the Jeddah facility until 2030, reinforcing Group I base oil market leadership.
Advanced strategic growth initiatives, including signing an MoU for Group III+ base oils and progressing the Growth II project to 68% completion, targeting H2 2026.
Received ISO certification for Occupational Health and Safety Management and the CSR Silver Award.
Board recommended a cash distribution of 3.5 per share for H2 2025, reflecting commitment to shareholder returns.
Financial highlights
Revenue for 2025 reached SAR 8.1 billion, with net income at SAR 855 million, down 12% from 2024 due to a 15% decline in base oil sales volumes.
EBITDA for 2025 was SAR 1,148 million, down 10% year-over-year; free cash flow was SAR 1,073 million, a 33% decrease due to higher capex and working capital movements.
Base oil crack margin improved 12% year-over-year to SAR 1,911/ton, driven by favorable feedstock costs and commercial optimization.
Capex for 2025 was SAR 444 million, up 119% year-over-year, with allocations for sustaining, turnaround, and growth projects.
Cash conversion reached 93%, ending the year with a net cash position of SAR 1,373 million and a gearing ratio of -10%.
Outlook and guidance
2026 production target is 1.25 million metric tons of base oil, accounting for a 30-day Yanbu shutdown and a 12-day Jeddah inspection.
Growth II project on track for H2 2026, enabling full-range Group I, II, and III base oil production.
Remaining turnaround expenses for 2026 estimated at SAR 120–140 million; growth CapEx projected at SAR 300–350 million.
High base oil demand expected in H1 2026, with potential for stable crack margins despite new global capacity.
Board recommended a dividend of SAR 588.9 million for H2 2025.
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