luberef®ANNUAL REPORT 2025
Annual Report 2025/Business Model
BUSINESS MODEL

Creating Value
for Our Stakeholders

Inputs

Total employees
632
CAPEX · SAR million
444
Feedstock · Thousand MT
3,487
  1. Feedstock

    Supply Chain Enablement

    • Feedstock sourcing: Reduced Crude Oil (RCO); Heavy Vacuum Gas Oil (HVGO).
    • Integrated logistics infrastructure: Vessels, pipelines, storage tanks, and road transport.
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  2. Business activities

    Refining, marketing and supporting activities

    • Base oil production
    • Base oil marketing
    • Localization and attracting foreign investment to Kingdom
    • Supply chain logistics
    • By-product sales
    • R&D through collaboration
    Yanbu
    Group I & Group II
    Jeddah
    Group I
    Jeddah Yanbu

    De-asphalted Oil sent to Yanbu Plant via trucks

    Explore business activities
  3. Base Oils

    Value Creation Across the Chain

    • Conversion of low value feedstock into high value premium base oils
    • Efficient production supported by integrated assets and logistics

    Group I Base Oils

    Group I base oils remain essential for applications that require durability and strong solvency, including marine lubricants, greases, metalworking fluids, and process oils.

    2025 production: Yanbu · Jeddah

    Group II Base Oils

    Group II base oils are the standard for high-performance lubricants, offering improved oxidation stability, fuel efficiency, and lower emissions. They are essential for automotive engines, heavy transport, and power generation systems.

    2025 production: Yanbu

    Group III Base Oils

    Group III base oils are high-purity products used in synthetic lubricants for hybrid vehicles, aviation, and advanced industrial systems.

    2025 supply: Aramco Base Oil Alliance

    In 2025 Group III was supplied through the Alliance, not yet produced by Luberef. The report expects the Yanbu Growth II Expansion to become operational in H2 2026.

    Explore base oils
  4. Distribution

    Global Market Access

    • Global market access through the Aramco Alliance distribution network
    Explore distribution

Outputs

Net income · SAR million
855
Base oil production · Thousand MT
1,044
ROACE
21%
VALUE CREATION

Value for our stakeholders

Shareholders
Driving long-term value through sustainable financial performance, disciplined growth, strong governance, and transparent disclosures.
Employees
Providing a safe and inclusive workplace, fair pay and benefits, and opportunities for training and career development.
Communities
Supporting social and economic development through community initiatives, education programmes, and local partnerships.
Government and Regulators
Ensuring full regulatory compliance while contributing to national development and environmental priorities.
Customers
Supplying high-quality premium base oils, reliable availability, and responsive technical and logistics support.
Suppliers
Building ethical, transparent partnerships that promote performance, innovation, and responsible sourcing.
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