Saudi Aramco Base Oil Company - Luberef SJSC

Saudi Aramco Base Oil Company - Luberef SJSC maintains a conservative capital structure with a debt-to-equity ratio of 0.21 and a current ratio of 1.36. Total assets stand at 7.61 billion SAR, supported by 4.58 billion SAR in equity and 3.02 billion SAR in liabilities. Long-term debt is 949 million SAR, while cash and equivalents total 567 million SAR, resulting in a negative net cash position as flagged in the risk assessment.

The company demonstrates strong profitability metrics, with a return on equity of 19.46% and a return on assets of 11.72%. Net income reached 855 million SAR on revenues of 8.10 billion SAR, yielding a net margin of approximately 10.5%. Operating income was 891 million SAR, indicating efficient cost management relative to gross profit of 1.18 billion SAR.

Revenue concentration is not detailed in segment or geographic breakdowns, implying a focused operational scope within the base oil and lubricant refining niche. The absence of diversified segment data suggests the company’s performance is tightly coupled with the global demand for refined petroleum products and base oils.

Growth trajectory analysis is limited by the absence of historical period data. However, the current financial snapshot shows robust operating cash flow of 1.52 billion SAR, which significantly exceeds net income, suggesting strong working capital management or non-cash expense adjustments.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which may constrain financial flexibility during periods of high capital expenditure. The company’s free cash flow is slightly negative at -18 million SAR, driven by capital expenditures of 444 million SAR.

Recent analyst sentiment is positive, with a mean recommendation of 1.67 (strong buy) and a mean price target of 141.02 SAR. The high price target is 154.00 SAR, while the low is 121.10 SAR. There are no hold ratings, with 2 strong buys and 4 buys recorded, indicating strong institutional confidence in the company’s near-term prospects.

Analysts project 9.7% upside to a mean price target of 141.0 SAR, reflecting positive market sentiment on current valuation.

Net margin of 11.0% is nearly double the 5.6% cohort median, indicating strong bottom-line performance within the sector.

The company faces medium liquidity risk, which could constrain operational flexibility or dividend sustainability during market stress.

Cash conversion ratio of 1.7 is below the 1.75 cohort median, indicating slightly weaker cash generation relative to peers.

Revenue SAR 2.16B, +1,4% YoY; Operating income +16,3% YoY.

• ▍Revenue SAR 2.16B, +1,4% YoY
• ▍Operating income +16,3% YoY
• ▍Net income +16,5% YoY
• ▍Free cash flow +1,5% YoY
• ▍Net margin 12.0%

Revenue SAR 1.57B, −40,3% YoY; Operating income −47,7% YoY.

• ▍Revenue SAR 1.57B, −40,3% YoY
• ▍Operating income −47,7% YoY
• ▍Net income −47,3% YoY
• ▍Free cash flow +60,5% YoY
• ▍Net margin 7.0%

Revenue SAR 2.16B, −13,6% YoY; Operating income +35,0% YoY.

• ▍Revenue SAR 2.16B, −13,6% YoY
• ▍Operating income +35,0% YoY
• ▍Net income +23,4% YoY
• ▍Free cash flow +24,9% YoY
• ▍Net margin 12.9%

Revenue SAR 2.25B, −17,6% YoY; Operating income −18,7% YoY.

• ▍Revenue SAR 2.25B, −17,6% YoY
• ▍Operating income −18,7% YoY
• ▍Net income −17,9% YoY
• ▍Free cash flow −38,8% YoY
• ▍Net margin 10.9%

Revenue SAR 2.13B; Operating income SAR 226.3M.

• ▍Revenue SAR 2.13B
• ▍Operating income SAR 226.3M
• ▍Net margin 10.4%

Revenue SAR 2.63B; Operating income SAR 219.7M.

• ▍Revenue SAR 2.63B
• ▍Operating income SAR 219.7M
• ▍Net margin 7.9%

Revenue SAR 2.50B; Operating income SAR 216.7M.

• ▍Revenue SAR 2.50B
• ▍Operating income SAR 216.7M
• ▍Net margin 9.1%

Revenue SAR 2.73B; Operating income SAR 316.2M.

• ▍Revenue SAR 2.73B
• ▍Operating income SAR 316.2M
• ▍Net margin 11.0%

Revenue SAR 8.10B, −19,3% YoY; Operating income −9,9% YoY.

• ▍Revenue SAR 8.10B, −19,3% YoY
• ▍Operating income −9,9% YoY
• ▍Net income −12,0% YoY
• ▍Free cash flow +95,6% YoY
• ▍Net margin 10.6%

Revenue SAR 10.04B, +5,8% YoY; Operating income −37,8% YoY.

• ▍Revenue SAR 10.04B, +5,8% YoY
• ▍Operating income −37,8% YoY
• ▍Net income −35,6% YoY
• ▍Free cash flow −525,6% YoY
• ▍Net margin 9.7%

Revenue SAR 9.49B, −10,6% YoY; Operating income −27,6% YoY.

• ▍Revenue SAR 9.49B, −10,6% YoY
• ▍Operating income −27,6% YoY
• ▍Net income −23,7% YoY
• ▍Free cash flow −105,7% YoY
• ▍Net margin 15.9%

Revenue SAR 10.61B, +57,0% YoY; Operating income +24,7% YoY.

• ▍Revenue SAR 10.61B, +57,0% YoY
• ▍Operating income +24,7% YoY
• ▍Net income +31,6% YoY
• ▍Free cash flow +38,9% YoY
• ▍Net margin 18.6%