Luberef, Aramco’s Base Oil Unit, Sees 18% Profit Drop in First Half of 2025
Luberef, a base oil company owned by Saudi Aramco, reported an 18% drop in profit for the first half of 2025. The profit fell to $124.4 million (SAR 466.7 million), mainly because it sold less base oil and made less money from by-products, the company said on Sunday.
First Half of 2025 Results
Luberef, 81.5% owned by Saudi Aramco, earned $1.2 billion (SAR 4.4 billion) in revenue from January to June 2025. This is 17.6% less than the $1.3 billion (SAR 4.9 billion) it made during the same period in 2024.
The company blamed the drop in revenue on lower base oil sales and lower prices and volumes of by-products. Profit also fell because the earnings from by-products (called “crack margins”) went down, even though base oil margins improved.
Second Quarter (Q2) 2025 Results
In Q2 2025, Luberef made a net profit of $65.4 million (SAR 245.2 million), down 13.2% from $79.7 million (SAR 298.8 million) in Q2 2024.
Revenue in the quarter also dropped by 10.9% to $599.8 million (SAR 2.25 billion), compared to $719.8 million (SAR 2.7 billion) last year. This was due to lower sales and prices of both base oil and by-products.
Dividend Payment
Despite the lower profits, Luberef’s board approved a cash dividend of $44.9 million (SAR 168.3 million) for the first half of 2025. This shows the company still wants to return value to its shareholders.
What’s Happening at Aramco
Saudi Aramco, Luberef’s parent company, is facing tough market conditions with lower oil prices. It is trying to reduce costs and improve efficiency.
Recently, Reuters reported that Aramco may sell 4–5 gas power plants that support its refineries. This could raise about $4 billion and help the company save money.
Aramco is also thinking about selling other assets, like housing, pipelines, and ports. The company currently runs or shares ownership of 18 power plants, with more—like the Tanajib Gas Plant—expected to open soon.
New Bond Sale
On June 2, Aramco raised $5 billion by selling bonds in U.S. dollars. This was its first dollar bond sale in 2025. The sale included:
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$2.2 billion in 30-year bonds at 6.375% interest
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$1.5 billion in 5-year bonds at 4.75%
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$1.25 billion in 10-year bonds at 5.375%
The bonds were popular with big investors and were listed on the London Stock Exchange.
Published: 4th August 2025
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