Q2 2025 Saudi Aramco Base Oil Company - Luberef SJSC Earnings Call Transcript
Key Points
- Saudi Aramco Base Oil Co - Luberef (SAU:2223) achieved 40.1 million man-hours without lost time injury, demonstrating a strong commitment to safety and operational excellence.
- The company successfully implemented the internal control over financial reporting (ICFR) program, enhancing governance and compliance.
- Resumed HVGO supply in Q2, contributing significantly to base oil production efficiency.
- The company signed a fixed rate shipping agreement, reducing freight costs and stabilizing logistical expenses.
- Base oil crack margins increased by 6% compared to the first half of 2024, exceeding the 10-year historic average.
- Two unplanned shutdowns at Jeddah and Yanbu facilities led to a revised base oil production guidance for 2025, down from 1.2 million metric tons to 1.05 million metric tons.
- Revenue declined in H1 2025 due to lower base oil and byproduct sales volumes, impacting EBITDA and net income.
- Free cash flow was affected by working capital movements and increased capital spending.
- The company faced procurement-related delays in the Growth II Project, impacting the timeline.
- Operational challenges led to a slight decline in sales volume compared to the first half of 2024.
(spoken in foreign language)
Hello, everyone. I am Saleh Alghamdi from the Investor Relations Department at Luberef. It is my pleasure to welcome you all to today's audio webcast, where we will be discussing our performance for the first half of 2025.
I'm also pleased to be joined today by our Chief Executive Officer, Mr. Samer Al-Hokail and our Chief Financial Officer, Mr. Saud Kamakhi. Our session will begin with a presentation, highlighting Luberef's H1 2025 performance, followed by a Q&A session. Please note this webcast is being recorded for future reference.
Before we dive into the presentation, I would like to draw your attention to our cautionary statement. During this presentation, we may make forward-looking statements that refer to estimates, plans, and expectations. Actual results and outcomes may differ materially due to factors stated in the slides.
With that out of the way, I will now hand over the call to our CEO, Mr. Samer Al-Hokail.
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