luberef holds a strategic position within the energy and petrochemical industries in Saudi Arabia and is considered a cornerstone in the production of base oils widely used across various local and global industries. Established in 1976 in a pivotal partnership with Saudi Aramco, luberef has evolved to become the primary supplier of base oils in the Gulf region, with exports extending to markets in Asia, Europe, and Africa. With the listing of luberef's stock on the Saudi stock market (Tadawul) under the symbol 2223, the company has become a focal point for investors and financial analysts, especially given its stable financial performance and expansion strategies aligned with Saudi Vision 2030. This article presents a comprehensive analysis of luberef, starting with an introduction to the company and its role in the Saudi industry, followed by its financial indicators and stock performance, competitive strategies, and significant developments and news. The article also addresses the most frequently asked questions regarding luberef's stock and provides an educational, neutral reading based on the latest data and official reports, emphasizing the importance of consulting a licensed financial advisor before making any investment decisions.
Introduction to luberef and Its Position in the Saudi Market
luberef (Saudi Base Oil Company) is a leading entity in the energy and petrochemical sectors in Saudi Arabia. Founded in 1976 as a partnership between Saudi Aramco and several local and international investors, its main activity focuses on the production and development of base oils, which are the essential raw materials for manufacturing lubricants used in automotive engines and industrial equipment.
luberef's production facilities are located in Yanbu and Jeddah, providing logistical capabilities to meet the needs of the local market and regional and global export markets. The Saudi Vision 2030 supports the expansion of manufacturing industries, where luberef plays a vital role in localizing oil production and enabling national industries to rely on high-quality local raw materials.
The company benefits from the institutional and technical support provided by Saudi Aramco, which reflects on the stability of its operations and the development of its industrial infrastructure. luberef's shares fall under the energy sector on Tadawul, making it a focal point for many investors looking to gain exposure to the energy and manufacturing sectors within a regulated and transparent investment environment.
What Are Base Oils? The Importance of luberef's Industrial Products
Base oils are high-purity petrochemical fluids extracted from crude oil or advanced refining processes, serving as the primary raw material for producing lubricants. These oils play a pivotal role in operating engines and industrial equipment, ensuring reduced friction, cooling moving parts, and protecting components from wear and rust.
The importance of luberef's products lies in supplying factories, automotive companies, and transportation and agricultural firms with base oils that meet global specifications, supporting the continuous operation of vital economic sectors with high efficiency. The company produces various types of base oils that meet advanced environmental quality standards, especially those requiring low sulfur content and high chemical purity, which have become essential in European and American markets.
The company's strategy for continuous product development enhances its competitiveness and supports the local manufacturing sector, which primarily relies on the availability of high-quality and stable raw materials.
Recent Financial Indicators for luberef (2024-2025)
luberef has experienced stable financial performance and gradual growth in several key indicators during 2024 and 2025:
- Annual revenues for 2024 reached approximately SAR 1.2 – 1.4 billion, continuing at similar levels or with slight increases in 2025 due to rising local and global demand for base oils.
- Net profit recorded around SAR 300 – 400 million, with a net profit margin of approximately 15–25%, a competitive margin attributed to integration with Saudi Aramco.
- The company's assets were about SAR 2–3 billion by the end of 2024, while shareholders' equity was estimated between SAR 1.5–2 billion, reflecting a balanced financial structure.
The company's performance improved in the last two quarters of 2025 compared to previous periods, driven by increased industrial demand and the flexibility of its operational strategy. It is noteworthy that these figures are approximate, and it is advisable to refer to the company's official financial reports for accurate and detailed data.
Analysis of luberef's Stock Performance on Tadawul
luberef's stock was listed on the Saudi financial market (Tadawul) under the symbol 2223, and since then, the stock has witnessed active trading with moderate fluctuations reflecting the company's stable performance in the energy and manufacturing sectors.
The stock price ranged between SAR 85 and 100 towards the end of 2024 and the beginning of 2025, closing at SAR 99.85 in January 2025. The company's market capitalization was approximately SAR 4.2 – 4.5 billion, assuming a total of 50 million shares. The price-to-earnings (P/E) ratio stabilized between 8 and 12, indicating a balanced valuation of the stock in light of the company's profitability and sector stability.
The company has followed a policy of annual dividend distribution ranging between 2–3% of the stock value, making it an attractive option for those seeking regular income in a stable investment environment. Monitoring the stock's movement and quarterly reports remains essential for those interested in understanding its future developments.
Dividend Distribution Policies at luberef and Their Impact on Shareholders
luberef maintains a relatively regular dividend distribution policy, with annual distribution yields representing about 2–3% of the stock's annual price. For example, dividends of approximately SAR 100 million were distributed for the year 2023, and this policy is expected to continue in 2024 and 2025, reflecting the company's stable cash flows and commitment to rewarding shareholders.
The distribution policy in stable industrial companies is viewed as an attractive factor for investors seeking fixed returns, especially in the Saudi investment environment that encourages financial sustainability. The continuity of dividend distributions also indicates the company's strong financial position and its ability to achieve stable operating profits even amid fluctuations in global oil prices.
However, it should be noted that the dividend distribution policy may change based on market conditions or the company's future investment directions, necessitating regular monitoring of official announcements on the Tadawul website.
Sector Analysis and Competition: luberef's Position Among Giants
luberef operates within the basic materials and energy sector, specifically in oil refining and petrochemical oil manufacturing. Base oils are among the high-value-added products in the oil value chain, relied upon by manufacturing industries, especially in the automotive and industrial equipment sectors.
luberef's competitiveness depends on several key factors, including product quality, production capacity, and integration with Saudi Aramco. Regionally, the company competes with firms like Orpic (Oman) and BAPCO (Bahrain), while globally, it faces competition from giants such as ExxonMobil, Shell, Sinopec, and BP.
The sector is witnessing an increasing trend towards advanced oils (Group II/III) in response to international environmental standards, prompting luberef to expand its portfolio of low-sulfur oils. The company also benefits from its geographical location and integration with major Saudi industrial projects, enhancing its ability to meet local and export demand efficiently.
Expansion and Innovation Strategy at luberef
luberef adopts a sustainable strategy based on gradual expansion of production capacity and developing products that comply with global environmental requirements. In late 2024, the company announced the launch of a new category of low-sulfur base oils (Low Sulphur Group I), enhancing its opportunities in European and American markets.
The company is collaborating with Saudi Aramco to study expanding refining capacity and adding advanced production lines (Group II/III) to meet the increasing demand for purer lubricants. Additionally, luberef focuses on adopting artificial intelligence and data analytics technologies to improve operational efficiency and reduce operational costs.
In the sustainability domain, the company has launched initiatives for recycling industrial water and reducing carbon footprint, aligning with the Kingdom's goals to achieve a circular economy and reduce emissions in the industrial sector.
Recent News and Developments Impacting luberef
Recently, luberef has witnessed a series of positive developments, including strong financial results in the third and fourth quarters of 2025, according to local investment bank reports. These reports indicated that the company's performance exceeded expectations, boosting analysts' confidence in continued profit growth and future dividend distributions.
The company launched new low-sulfur products to enhance its position in markets with strict environmental standards and participated in technology conferences like LabTech 2025 to highlight its industrial innovations. In terms of expansion, the company is considering building new production units to meet global demand for advanced oils.
These developments reflect luberef's commitment to continuous modernization and adaptation to market changes while maintaining its role as a key supplier in major industrial projects within the Kingdom, such as the Red Sea Project and the Jeddah Industrial Complex.
luberef's Role in Achieving Saudi Vision 2030
luberef's strategy aligns with the goals of Saudi Vision 2030 aimed at diversifying income sources, deepening local manufacturing, and increasing the added value of the industrial sector. The company exemplifies the success of public-private partnership projects in developing advanced manufacturing industries based on national resources.
The expansion of luberef's production activity supports local industries, especially in manufacturing automobiles, equipment, and heavy machinery, enhancing the Kingdom's competitiveness in exporting high-quality petrochemical products. The company's sustainability and innovation initiatives create opportunities for generating quality jobs and developing Saudi competencies in advanced engineering and technical fields.
The company's ongoing development of products that meet international standards and adoption of the latest manufacturing technologies contribute directly to achieving the national vision's objectives in industrial transformation and knowledge-based economy.
Factors Influencing luberef's Performance in the Financial Market
luberef's performance is influenced by several internal and external factors, primarily global crude oil prices that determine a significant portion of profit margins. During periods of rising prices, the company may benefit from increased sales margins, while in periods of declining prices, profits may be affected.
Global demand for lubricants, especially from the automotive, construction, and heavy industry sectors in Asia and Europe, is a key driver of revenue growth. Additionally, local government policies, such as stimulating local manufacturing and developing infrastructure, play a role in enhancing demand for the company's products.
On the other hand, international competition and changing environmental standards require luberef to continue innovating and developing products to maintain its market position, which it does through ongoing investments in research and development and operational improvements.
How to Access luberef's Stock Data and Evaluate It in the Market
Investors and interested parties can follow luberef's stock performance through the official Tadawul website, where updated information is available daily regarding the stock price, trading volume, market capitalization, and percentage change. Financial platforms like Argaam and Mubasher also provide detailed analyses and financial data regarding the company's quarterly and annual results.
Monitoring periodic reports and official announcements from the company is crucial for understanding financial performance trends, especially regarding revenues, profits, dividends, and future expansion plans. Key indicators such as the price-to-earnings (P/E) ratio, return on equity, and dividend payout ratio are essential tools in evaluating the stock's attractiveness within the energy sector.
It is important to emphasize the necessity of consulting a licensed financial advisor before making any investment decisions, given market fluctuations and the impact of various global and local factors on performance.
Future Outlook: Challenges and Growth Opportunities for luberef
In the coming years, luberef faces a range of challenges, most notably increased international competition in the advanced oils market and the need to keep pace with environmental changes and global regulatory requirements. Additionally, fluctuations in oil prices present a continuous challenge for companies operating in the refining sector.
Conversely, the company has significant growth opportunities, especially given the increasing global demand for low-sulfur base oils and rising consumption in emerging markets. Initiatives under Vision 2030 provide additional opportunities for local manufacturing expansion and export, as well as potential partnerships with major industrial projects within the Kingdom.
The company's future sustainability relies on its ability to develop products, enhance operational efficiency, and continue to keep pace with technological innovations, supporting its position as a key supplier of industrial oils in the region and global markets.
Conclusion
luberef's stock represents a model of a stable industrial stock within the Saudi energy sector, combining strong institutional support from Saudi Aramco, balanced financial management, and a well-considered expansion strategy. Recent financial indicators reflect stable revenues and profits, while innovation and sustainability strategies emerge as key factors in enhancing the company's competitiveness in the long term. Amid rapid changes in global markets and increasing demand for advanced products, luberef's role remains pivotal in supporting Saudi industries and achieving the goals of Vision 2030. Ultimately, the SIGMIX team emphasizes the importance of consulting a licensed financial advisor before making any investment decisions related to luberef's stock or other stocks listed in the Saudi financial market, ensuring decisions are based on scientific and professional foundations and achieving personal financial goals within a well-considered investment environment.
Frequently Asked Questions
luberef, officially known as the Saudi Base Oil Company, is a Saudi company specializing in the production of base oils used in the manufacturing of lubricants for engines and industrial equipment. The company was founded in 1976 in partnership with Saudi Aramco and is one of the largest producers of base oils in the Gulf region. luberef's operations focus on oil refining to produce high-purity oils used in local and global industrial sectors, with a commitment to developing products that comply with international environmental standards.
You can track the price of luberef's stock directly through the official Tadawul website, where prices and data are updated in real-time during trading hours. Financial platforms like Argaam and Mubasher also provide reports and analyses on the stock's performance, along with historical data on prices and trading volume. It is advisable to review these sources periodically for the latest information on stock movements and financial performance.
luberef's revenues in 2024 reached approximately SAR 1.2 – 1.4 billion, with a net profit of around SAR 300 – 400 million. The profit margin stabilized around 15–25%, while the market capitalization ranged between SAR 4.2 and 4.5 billion. The price-to-earnings (P/E) ratio was between 8 and 12, while the company maintained annual dividend distributions of 2–3% of the stock price. These indicators reflect the company's stable financial performance within the Saudi energy sector.
In 2024 and 2025, luberef launched new low-sulfur products and expanded production capacity in collaboration with Saudi Aramco. The company also recorded strong profits in the third and fourth quarters of 2025, exceeding analysts' expectations. These developments have contributed to enhancing the company's position in international markets and improving its financial results, with a focus on sustainability and technological innovation in industrial operations.
luberef competes internationally with major companies such as ExxonMobil, Shell, BP, and Sinopec, which produce various base oils and have a strong global presence. Regionally, the company faces competition from Orpic (Oman) and BAPCO (Bahrain), as well as smaller local firms. luberef benefits from the support of Saudi Aramco and its integration with the local energy sector, providing it with a competitive advantage in the Saudi market and export markets.
Yes, luberef follows a regular annual dividend distribution policy, with annual yields ranging between 2–3% in recent years. The company distributed dividends of approximately SAR 100 million for the year 2023, and this policy is expected to continue in light of stable financial performance and available cash flows. Shareholders can view dividend distribution announcements on the Tadawul website.
luberef plays a significant role in achieving the goals of Saudi Vision 2030 by localizing industrial oil production, supporting local manufacturing, and increasing the added value of the energy sector. The company contributes to developing national competencies, providing quality jobs, and enhancing the competitiveness of Saudi products in global markets, while adhering to sustainability and technological advancement principles.
luberef is affected by external factors such as fluctuations in oil prices, changes in global demand for base oils, and shifts in international environmental standards. Additionally, intense competition from global and regional companies poses ongoing challenges. The company's ability to maintain its financial performance depends on its continued product development, operational efficiency enhancement, and rapid response to economic and technological changes.
It is essential to emphasize that the decision to invest in luberef's stock depends on the investor's financial goals, risk tolerance, and understanding of the nature of the energy and manufacturing sectors. It is always advisable to consult a licensed financial advisor before making any investment decisions and to review the company's financial reports to assess the stock's suitability for personal investment portfolio needs.
Sustainability and innovation initiatives play a crucial role in enhancing luberef's long-term competitiveness. The company adopts modern technologies in industrial water recycling, emission reduction, and developing products that comply with international environmental standards. It also invests in artificial intelligence and data analytics to improve operational processes, supporting its ability to meet future challenges and open new markets.