Luberef reported a 105% increase in net profit for the first nine months of 2026, reaching SAR1.53 billion (U.S.$408 million), as record base oil and by-product crack margins helped offset lower sales volumes and shipping disruptions. Base oil crack margins averaged SAR2,931 per metric ton, up 56% year on year and the highest in the company’s history, according to its earnings presentation published on Nov. 5.
Revenue rose 29% year over year to SAR8.4 billion, compared with SAR6.5 billion in the same period of 2025. Base oil crack margins averaged SAR2,931 per metric ton, up 56% from a year earlier and 63% above the 10-year average. The company attributed the improvement to tighter supply, stronger prices and refiners prioritizing fuel production.
However, base oil sales volumes fell to 793,000 tons during the nine-month period as disruptions to shipping through the Red Sea and Bab el-Mandeb forced vessels to take longer routes around the Cape of Good Hope. Luberef said the diversion added approximately 45 to 60 days to shipping times.
It expects fourth-quarter sales of 240,000 to 260,000 tons, taking full-year volumes to approximately 1.04 million tons.
The company also postponed the shutdown associated with its Growth II expansion from October 2026 to the first half of 2027, citing additional engineering, procurement and construction work. The project will add API Group III production capacity.
Luberef confirmed the continued operation of its Jeddah facility after securing a new 10-year feedstock agreement with Saudi Aramco, supporting ongoing Group I production.