DMEA: Luberef considers 50% dividend

Saudi Aramco Base Oil Co. (Luberef) recorded profits of SAR2bn ($530mn) after tax in 2022 prompting its board of directors to suggest a 50% cash dividend or SAR5 ($1.33) per share corresponding to the second half of the year.

In a statement to accompany its results, Luberef said that the net income was achieved thanks to revenues of SAR10.6bn ($2.8bn), up from SAR8.8bn ($2.4bn) a year earlier. “This increase is mainly driven by the improved base oil crack margins of 10% and increase in sales volumes by 6% compared to last year,” it said.

The company noted that EBITDA grew 20% over the same period, to SAR2.5bn ($669mn).

The company was formed in 1976 as a 70:30 JV between Aramco and US super-major ExxonMobil, before the American giant sold its 30% stake to Jadwa Industrial Investment Co. in 2007. Jadwa sold its share in the company in December 2022 when the company was listed on the local Tadawul All Share Index (TASI), the Riyadh stock exchange, raising $1.32bn.