Energy Luberef’s Q1 profit surges on higher base oil prices By Reuters May 5, 2023, 6:20 AM Luberef/Twitter Luberef reported a first half net profit of SAR900 million from SAR740.1 million a year earlier Saudi oil giant Aramco’s base oil subsidiary Luberef’s net income rose by nearly half in the first quarter despite a drop in revenue, mainly due to lower feedstock prices resulting in higher crack margins. Saudi Aramco Base Oil Company (Luberef) posted net income of SAR446 million ($118.92 million) for the first quarter, up from SAR303 million a year earlier, it said in a statement. The company, which listed 30 percent of its shares in an IPO in December, reported revenue of nearly SAR1.8 billion, down about a third from the first quarter of 2022. The higher profit was “mainly driven by an increase in base oil prices of six percent and a reduction in feedstock prices by 46 percent compared to (the) same quarter last year”, Luberef said. “This positive increase (was) offset partially by a reduction in sales volume by 14 percent compared to (the) same quarter last year,” it added. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
