Luberef's Second-Half Dividend Proposal Raises 2025 Yield to SAR 4.5 per Share, Reinforcing Free Cash Flow-Linked Policy

Riyadh | EcoPulse24

The board of Saudi Aramco Base Oil Company – Luberef has approved a cash dividend distribution to shareholders for the second half of 2025, continuing its payout policy linked to operational performance and free cash flow levels. Details on entitlement and payment dates will be announced at the upcoming general assembly.

As per the board recommendation dated February 6, 2026, the total proposed distribution stands at SAR 588,912,327.5, equating to SAR 3.5 per share for 168,260,665 eligible shares. The total 2025 dividend will reach SAR 4.5 per share, approximately 70% of free cash flow, in line with Luberef’s performance-based policy.

Shareholders eligible for the dividend will be those holding shares at the end of the general assembly meeting (date to be announced), with registration at the Securities Depository Center two trading days after the record date. The payment date will be disclosed later.

Luberef’s annual results for the year ending December 31, 2025, showed a decline in operating performance versus 2024: revenue fell to SAR 8,103.4 million from SAR 10,035.9 million, and net profit attributable to shareholders dropped to SAR 855.3 million from SAR 972.0 million. Operating and gross profits also decreased, while total equity rose to SAR 4,582.4 million. Earnings per share dropped to SAR 5.08 from SAR 5.78.

The company attributed the revenue and net profit decline to lower sales volumes for base oils and by-products, mainly due to scheduled shutdowns at the Yanbu facility, despite improved base oil cracking margins. The auditor’s report was unqualified, confirming the financial statements’ integrity and situating the results within temporary operational factors, with continued adherence to free cash flow-linked dividend policy.

For non-resident shareholders, Luberef noted that dividends will be subject to a 5% withholding tax upon transfer or deposit, per Saudi tax regulations. Non-residents with tax exemptions should provide supporting documents from the Zakat, Tax and Customs Authority.

On the market, Luberef shares traded at SAR 104.8, up SAR 2.9 (2.85%), with a traded value of SAR 25,098,950.6 and a volume of 239,243 shares. Concurrently, Saudi Aramco shares showed active trading with a previous close at SAR 25.60, opening at SAR 25.64, ranging between SAR 25.68 and SAR 25.46, with 3,579,916 shares traded across 6,518 transactions and a YTD change of 7.01%.

EcoPulse24 Analysis: Luberef’s proposed payout reflects the ongoing model of industrial companies with strong cash flows translating significant operational returns to shareholders, favoring a free cash flow-linked policy over fixed distributions. The precise timing of entitlement and registration highlights market sensitivity to payout schedules and their effect on trading behavior. With robust liquidity and transaction activity in both Luberef and Aramco shares, the market’s momentum is driven not just by operational news but also by cash yield expectations, enhancing the appeal of high-liquidity, dividend-paying stocks.