Saudi Aramco’s refining company Luberef made 7.3% less profit in the first quarter of 2025, earning $59 million
Saudi Aramco Base Oil Company (Luberef) said on Sunday that its profit for the first quarter of 2025 fell by 7.3% compared to the same time last year, reaching $59 million (SAR 221.5 million). The main reason was lower profits from by-products.
First Quarter Results
Luberef’s revenue fell by 2.6% in the first quarter of 2025 compared to the same period last year. It earned $567.4 million (SAR 2.1 billion). This drop happened because it sold fewer by-products, even though base oil prices went up, according to a report on the Saudi stock exchange (Tadawul).
Operating profit also went down by 8%, reaching $60.3 million (SAR 226.3 million). However, free cash flow rose by 163% to $77.8 million (SAR 292 million), thanks to changes in working capital.
EBITDA (earnings before interest, taxes, depreciation, and amortization) fell by 11% to $77 million (SAR 289 million).
The profit margin from base oil increased by 9% to $467.9 (SAR 1755) per metric ton, and base oil sales volume went up slightly by 0.4% to 272,000 metric tons.
Background
Luberef was founded in Jeddah in 1976 as a partnership between Petromin and Mobil. In the 1990s, Saudi Aramco took over Petromin’s 70% share. Later in 2007, Mobil’s 30% share was sold to Jadwa Industrial Investment Company.
In 2022, Luberef became a public company, raising $1.3 billion by selling nearly 30% of its shares on the Saudi stock market (Tadawul).
Luberef runs two plants in Yanbu and Jeddah, which together can produce 1.5 million metric tons of base oil each year. It is the only company in Saudi Arabia that makes virgin base oil and plays an important role in the country’s refining industry. Its location along the maritime Silk Road is also a big advantage.
Published: 5th May 2025
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