Saudi Aramco Base Oil Company – Luberef (2223) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 performance, expanding into Qatar, Bahrain, and Kuwait, and reinforcing GCC market presence amid challenging geopolitical conditions and evolving market dynamics.

• Maintained uncompromised safety culture with zero recordable incidents, zero TRIR, and over 44 million man-hours without Lost Time Injury.

• Advanced strategic initiatives, including finalizing feedstock supply for Jeddah, progressing Group III slating, and Growth II project reaching 71% completion.

• Q1 2026 net income rose 16% year-over-year to SAR 258 million, driven by strong by-product and crack margins.

• Base oil sales volume was 240 thousand metric tons, with revenue at SAR 2,158 million and EBITDA at SAR 337 million.

Financial highlights

• Net income reached SAR 258 million, up 16% year-over-year and 135% sequentially, despite a 12% decline in sales volumes.

• Total revenue for Q1 2026 was approximately SAR 2.2 billion.

• EBITDA rose to SAR 337 million, up 17% year-over-year and 88% sequentially.

• Free cash flow was SAR 41 million, down 86% year-over-year due to higher capex and working capital build-up.

• Cash balance increased from SAR 1,373 million to SAR 1,397 million during the quarter.

Outlook and guidance

• Full-year base oil sales target revised to 1.15 million metric tons, reflecting Q1 disruptions; domestic market targeted at ~30%.

• Growth II project on track for commissioning in H2 2026, with 71% completion as of Q1.

• Expect improved cash flow in Q2 as crack margins recover and working capital normalizes.

• Remaining turnaround expenses for the year estimated at SAR 90–100 million.

• Planned 30-day shutdown at Yanbu Refinery in H2 2026 for Growth II project completion.