Riyadh – Mubasher: Saudi Aramco Base Oil Company (Luberef) penned an engineering, procurement, and construction deal worth SAR 555 million to enlarge the Yanbu facility's base oil production capacity.
The 30-month agreement aims to expand the facility’s annual production capacity to nearly 1.30 million metric tonnes (MT) in 2025, according to a recent bourse disclosure.
Luberef plans to scale up the existing units at the oil plant to their maximum potential production capacity. This aligns with the company’s objectives to increase the oil production of Group II or start the manufacturing process of Group III.
The expansion strategy will boost the production of additional Group II and Group III base oils in accordance with market demand.
Meanwhile, the awarding and signing dates of the contract were 23 and 26 February 2023, respectively.
Luberef expected that the project will reflect positively on its income statements after the commercial operations begins by the second half (H2) of 2025.
Last year, the Tadawul-listed firm posted a 31.65% year-on-year (YoY) surge in net profit after Zakat and tax to SAR 1.97 billion, compared to SAR 1.50 billion.
Revenues jumped by 19.98% to SAR 10.61 billion in 2022 from SAR 8.84 billion in 2021, whereas the earnings per share (EPS) rose to SAR 11.72 from SAR 8.90.
