Saudi Aramco Base Oil Company - Luberef announced its Q1 2024 financial results, reporting total revenue of approximately SAR 2.2 Billion and net income of approximately SAR 239 Million. Net income decreased by 46% compared to the same quarter in 2023 due to a decline in base oil crack margins.

Comparing to the fourth quarter of 2023, the revenue and the net income decreased by around 14% and 11% respectively. The decrease is mainly due to a decrease in base oil crack margins and a decrease in sales volumes due to the hydrocracker unit scheduled shutdown for catalyst replacement.

During Q1 2024, the Company generated free cash flow of SAR 111 million. The FCF of the quarter was negatively impacted by a change in working capital, caused by an increase in semi-finished inventory due to the planned hydrocracker shutdown and the timing of byproducts receivables payment.