Saudi Aramco Base Oil Company-Luberef, whose net income declined by 34% y-o-y as crack margins remained under pressure and which more than offset the increase in revenue of 4% y-o-y, was still ahead of expectations, Al Rajhi Capital Research said.

 

Nevertheless, there was sequential improvement in the bottom-line growth of 25% supported by higher volumes (Q1 had a shutdown) and slightly better crack margins as well as absence of imported feedstock. 

 

Despite the shutdown in Q1, the company has reiterated its FY24 volume growth guidance at mid-single digit and expects domestic base oil volumes to account for 30% (price premiums in the range of SR375 ($100)-SR750/tonne).--TradeArabia News Service