Saudi Aramco Base Oil CO. LUBEREF posts 47% profit leap in first quarter to SAR466 mln

Saudi Aramco Base Oil Company’s (LUBEREF) net profits after Zakat and Tax reached SAR 446 million during the first quarter compared to a net profit of SAR 303 million for a similar quarter last year, with an increase of 47%, this came upon announcement of the interim financial results for the period ended 31 March 2023 (Three Months).

The increase is amounted to SAR 555 million in the first quarter, compared to SAR 506 million in the same quarter of the previous year, with an increase of 10%.

Profit per share in the current period is SAR riyals, compared to SAR 1.79 in the similar period for previous year.

Net income increased in the current quarter compared to the same quarter of the last year driven by:

1- An increase in base oil crack margins.

2- In addition to a decrease in zakat and income tax expenses due to Luberef being subjected to zakat only after its listing.

This was despite lower quantities sold

Net income decreased in the current quarter compared to previous quarter due to a:

1-            Reversal of all deferred tax liabilities in the fourth quarter of last year arising from Saudi Aramco’s shareholding in Luberef, as Luberef is no longer subjected to income tax and is subjected to zakat only after completing its listing on Tadawul.

2- Decrease in base oil crack margins.