Saudi oil giant Aramco's base oil supplier Luberef on Wednesday reported a 65% drop in Q4 2023 net profit to 269 million riyals ($71.7 million) from SAR 763 million in the year-ago period.

For full-year 2023, the refiner saw a net profit drop of 24% to SAR 1.51 billion, due to a 37% decrease in base oil crack margins despite the higher base oil sales volumes.  

The net profit missed analysts’ mean estimate of SAR340.7 million for Q4 and SAR1.64 billion for FY, according to LSEG data.

Sales revenue fell over 10% to SAR9.49 billion for FY 2023, the company said in a statement on the Tadawul bourse.

Capital expenditure rose manifold to SAR213 million over 2023 versus SAR48 million in 2022.

Luberef has recommended a dividend payout of SAR5 per share for H2 2023.

(Reporting by Brinda Darasha; editing by Seban Scaria)