Saudi-based base oil producer Luberef completed the replacement of its hydrocracker catalyst at its Yanbu site, the company announced in a May 4 filing to the Saudi stock exchange. The announcement came at the same time as it reported a 2.6% year-on-year decline in first-quarter revenue, attributed to reduced sales volumes and margins from byproducts.
The company reported first-quarter revenue of 2.13 billion Saudi riyals ($567 million), down from 2.18 billion riyals a year earlier. Base oil sales, excluding imported volumes and a joint venture, were 272,000 metric tons, a modest 0.4% increase from the same period in 2024.
Luberef’s capital spending surged to 108 million riyals ($29 million) in the first quarter, almost tripling from 35 million riyals the previous year. The rise was driven by investment in growth initiatives, ongoing operations and scheduled maintenance.
As of January, Luberef reported that its Yanbu Growth II project was 40.3% complete, slightly behind its target of 42.6%. The company expects pre-commissioning to begin in January 2026, following a planned turnaround in Yanbu scheduled for November to December 2025.
The aim of the Yanbu Growth II project is expanding capacity and improving operations and includes upgrades that will boost production of higher-quality API Group II base oils to meet rising demand in the global lubricants market.
Luberef operates two base oil facilities in Saudi Arabia. Its Jeddah plant has capacity for 266,000 t/y of Group I base oils. The larger Yanbu facility, which has undergone expansion, has capacity of 1.3 million t/y of both Group I and Group II base oils.