Saudi Aramco’s refining unit, Luberef, saw a 5.8% increase in revenue in 2024, reaching $2.7 billion, but its profit dropped sharply
Saudi Aramco Base Oil Company (Luberef) reported a 5.8% increase in revenue for 2024, reaching $2.7 billion (SAR 10 billion). This growth was due to higher sales of base oils and by-products, even though base oil prices dropped, the company said in a statement on Monday.
Financial performance
Luberef’s net profit dropped by 35.6% to $259.2 million (SAR 972 million) compared to last year. This was due to lower margins for base oils and by-products, even though sales volumes increased, according to the report on the Saudi Exchange.
The company’s operational profit also fell by 37.1% to $266.6 million (SAR 1 billion) in 2024, down from $426.6 million (SAR 1.6 billion) the previous year.
Saudi Aramco, the owner of Luberef, said the drop in profits was because of lower margins for base oils and by-products, which outweighed the revenue from higher sales volumes and better by-product prices.
Recent deal
In August last year, Luberef partnered with King Abdullah University of Science and Technology (KAUST) to research new technology for making low-sulfur base oils. This builds on using uODS technology to create low-sulfur heavy marine fuel oil.
In the same month, Luberef announced a cash dividend payout of $161.6 million (SAR 605.7 million) for the first half of the year.
Luberef IPO
Luberef, which has two facilities in Yanbu and Jeddah and produces 1.5 million metric tonnes of base oil per year, went public in December 2022. It raised $1.3 billion by selling almost 30% of its shares on the Saudi Stock Exchange (Tadawul).
Luberef was founded in Jeddah in 1976 as a joint venture between Petromin and Mobil. In the 1990s, Saudi Aramco bought Petromin’s 70% share, and Mobil’s 30% stake was sold to Jadwa Industrial Investment Company in 2007. Luberef is the only producer of virgin base oil in Saudi Arabia and plays an important role in the country’s refining industry, thanks to its location along the maritime Silk Road.
Published: 18th February 2025
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