Saudi Arabian Base Oil Co., better known as Luberef, reported a net profit after Zakat and tax of SR1.97 billion ($530 million) in 2022, a 32% increase over the previous year.
According to a report to the Saudi stock exchange, the company’s net profit in the fourth quarter of 2022 quadrupled to SR763.19 million, up from SR220.81 million in the same time of 2021.
Luberef’s net profit increased 60.7 percent in the fourth quarter from SR474.79 million in the third quarter of last year.
According to the bourse filing, Luberef’s overall comprehensive income in 2022 increased 37.42 percent year on year to SR2.02 billion.
Luberef attributed the increase in overall comprehensive revenue to many sources, including higher base oil and by-product crack margins and sales volumes.
As the company’s earnings increased, its board of directors proposed a 50% cash dividend, or SR5 per share, for the second half of 2022, according to the statement.
It should also be noted that this is Luberef’s first cash payout since its initial public offering in December 2022.
According to the Tadawul announcement, the dividend distribution date will be revealed later.
Mohammed Y. Al-Qahtani, senior vice president of downstream at Saudi Aramco, stated that Luberef’s listing on the Saudi Stock Exchange was a significant milestone. Luberef’s IPO, he noted, will help propel the company’s “growth trajectory and unleash new prospects for all stakeholders.”
Luberef raised $1.32 billion in its first public offering, which received great interest from investors both in the Kingdom and throughout the world.
Luberef sold shares controlled by private equity firm Jadwa Investment, which owned 30% of the Aramco entity after purchasing it from Exxon Mobil in 2007.
Aramco now controls the remaining 70% because it did not sell any of its shares during the transaction.