17-02-2025
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.
