Luberef Crushes Records with 113% Net Income Boost in Q2

Luberef, Saudi Aramco's base oil company, marked its fiftieth year of operation by posting the strongest interim results in its history. The company's net income soared 113% to SAR 992 million in the first half of 2026, driven primarily by a significant increase in base oil crack margins.

The average base oil crack margin reached SAR 2,732 per metric ton, up 49% from SAR 1,828 per metric ton in the same period of 2025. This expansion explains most of the earnings jump that followed. In the second quarter alone, the crack margin climbed to SAR 3,625 per metric ton, a 91% increase over the same period last year.

Total revenue for the first half of 2026 reached approximately SAR 5.6 billion, while EBITDA rose 94% from SAR 609 million to SAR 1,184 million. Quarterly figures show that the acceleration in earnings came mainly from the second quarter, which accounted for roughly three-quarters of the entire half-year profit.

Profitability efficiency improved alongside absolute earnings, with return on average capital employed rising to 33%, up 12 percentage points from 21% a year earlier. Free cash flow reached SAR 1,064 million, driven mainly by stronger cash flow from operations rather than working-capital or one-off effects.