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Luberef’s Q1 profit surges on higher base oil prices

People, Person, Man 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.