Saudi Aramco’s base oils subsidiary Luberef produces and markets high value lubricants which are used in a range of sectors including automotives and emerging energy-transition industries such as wind turbines. The firm is finalizing a major expansion project which will enable it to move further up the value chain, and is now studying a further potential expansion project which would yield still-higher margins.
After securing bumper revenues and profits over 2021-2023, higher feedstock costs led to a sharp drop in profits to a post-pandemic low of $259mn last year. The firm operates facilities at Yanbu and Jeddah in Saudi Arabia, with combined base oil production capacity of 1.3mn t/y, alongside lower-margin byproducts. (CONTINUED - 919 WORDS)
