Latest news with #YanbuGrowthII
Zawya
17-02-2025
- Business
- Zawya
Saudi's Luberef targets Yanbu Growth II project completion in 2025
Saudi Aramco Base Oil Company (Luberef) will focus on executing the Yanbu Growth II project in 2025, according to President and CEO Samer Al-Hokail. 'The project is the cornerstone of our expansion strategy,' he said in the company's 2024 result statement. The CEO said the project will enable the company to produce Group III base oils, making it the region's sole producer of all three base oil groups. The project will enhance production flexibility, helping maximise utilisation capacity and capture opportunities in high-netback lubricant markets. In February 2023, Luberef awarded a 555-million Saudi riyals ($148.55 million) Engineering, Procurement and Construction (EPC) contract to Egypt's Petrojet for the Yanbu Growth II expansion project. The expansion will expand the Yanbu facility's base oils (Group II and Group III) production capacity to 1.3 million metric tonnes (MT) per annum by 2025. Luberef's 2024 net profit fell 36 percent year-on-year (YoY) to SAR 972 million , driven by a decline in base oil and by-product margins. Revenue rose six percent YoY to SAR 10 billion. (Editing by Anoop Menon) (
Argaam
17-02-2025
- Business
- Argaam
Luberef to focus on completing Yanbu Growth II project in 2025: CEO
Saudi Aramco Base Oil Co. (Luberef) plans to focus mainly on completing Yanbu Growth II project in 2025, which represents the cornerstone of its growth strategy, President and CEO Samer Al-Hokail said. The project will enable the production of Group III base oils, making the company the sole producer of the three groups of base oils in the region. Commenting on the company's results for 2024, he indicated that the project will enhance the company's productivity and grant global production flexibility, which will enhance its ability to maximize capacity utilization and seize opportunities in base oil markets to maximize returns. He further indicated that Luberef today is well-positioned to capitalize on strategic growth opportunities. Meanwhile, he pointed out that in year 2024, the company demonstrated remarkable resilience and agility, achieving increased sales volumes, despite geopolitical challenges in the region. According to data compiled by Argaam, Luberef reported a 36% decline in net profit to SAR 972 million in 2024, compared to SAR 1.5 billion in the prior year. Q4 2024 profit stood at SAR 208.2 million. Yanbu Growth II Project aims to expand the existing units of the production facility to maximum production capacity, increase the total production capacity to reach about 1.3 million metric tons per year of base oils, and start producing Group III base oils, at a cost of between SAR 560 million to SAR 750 million.
