Saudi Aramco Base Oil Company – Luberef net profit rose 47% to SAR 445.7 million in Q1 2023, from SAR 302.6 million a year earlier.

The positive performance was driven by higher base oil crack margins and lower Zakat and income tax expenses as Luberef became subjected to Zakat following its listing.

This came despite the lower quantities sold.

Sequentially, Luberef net profit fell 41.6% from SAR 763.19 million in Q4 2022 on the reversal of all deferred tax liabilities in Q4 2022 arising from Saudi Aramco’s shareholding in Luberef, as the latter is no longer subjected to income tax but rather is subjected to Zakat.

Meanwhile, base oil crack margins decreased during the current quarter compared to the previous quarter.

Total shareholders’ equity, with no minority interest, stood at SAR 5.53 billion as of March 31, 2023, compared to SAR 4.54 billion a year earlier.