Luberef (Saudi Aramco Base Oil Company), SA15M1HH2NH5

Luberef stock reports record first-half profit of SAR 992 million

Published on 10/07/2026 at 10:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Five analysts rate Luberef Buy with a SAR 148.62 average target, according to MarketScreener. The October 7 quote was SAR 131.70 on Tadawul.

Luberef (Saudi Aramco Base Oil Company), SA15M1HH2NH5, Illustration mit AI erstellt.

Luberef stock was trading at SAR 131.70 on the Saudi Exchange on October 7, 2026 at 10:53 a.m. AST, up 0.23 percent from the prior close. The latest reported catalyst is a record first-half 2026 net income of SAR 992 million, up 113 percent from the prior year, according to Investing.com.

Profit reaches SAR 992 million

The first-half result reflects a sharp improvement in base oil economics, with the report linking earnings growth to stronger pricing and wider crack margins. The same report put first-half EBITDA at SAR 1.184 billion, up 94 percent year over year, while free cash flow reached SAR 1.0 billion, up 346 percent.

The second-quarter figures show the operating leverage behind that result. According to the Saudi Exchange, Q2 2026 revenue was SAR 3.419 billion versus SAR 2.249 billion in Q2 2025, while net profit attributable to shareholders rose to SAR 734.097 million from SAR 245.197 million.

Analyst target stays above the quote

According to MarketScreener, the analyst consensus is Buy among five analysts, with an average price target of SAR 148.62. That target lies 12.85 percent above the October 7 price of SAR 131.70, giving investors a concrete measure of the gap between the market quote and published expectations.

Bank of America also cited base oil crack spreads at 1.25 times pre-crisis levels and valued the stock at 11.8 times projected 2027 earnings, below its stated long-term average of 14 times, according to Investing.com. The comparison matters because unusually strong margins are supporting both the earnings rebound and the valuation case.

Jeddah supply adds durability

Luberef also secured a successor feedstock and return-streams agreement for its Jeddah facility. Simply Wall St reported that the agreement secures up to 24,500 barrels per day of feedstock and 16,500 barrels per day of return streams for 10 years starting August 29, 2026.

The arrangement supports continued Group I production at Jeddah, while the Growth II project is scheduled to add Group III capacity in 2027. The board has also approved a SAR 4 per share distribution for the first half of 2026, with payment scheduled for October 15, 2026.

Luberef stock stays near yearly high

The October 7 intraday range was SAR 130.20 to SAR 131.80, and the market capitalization stood at SAR 22.2 billion. The 52-week range of SAR 84.45 to SAR 143.00 places the stock 7.90 percent below its yearly high, leaving margin performance and the planned expansion as the key valuation checkpoints.