Annual report
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Annual Report ‘25 Empowering Industry Through Every Grade
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In The Name of Allah, The Most Gracious, The Most Merciful Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al-Saud His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al-Saud Crown Prince, Prime Minister of Saudi Arabia 32 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Chairman’s Statement 8 CEO’s Statement 10 Luberef at a Glance 12 Empowering Industry Through Every Grade 14 Performance Highlights 16 Where We Operate 18 Our Journey 20 Year in Review 22 Investment Case 24 Shareholder Information 30 Business Model 34 Strategic Approach 36 Strategy in Action 38 Supporting Vision 2030 40 Market Review 42 CFO Statement 44 Business Overview 50 Operational and Safety Review 56 Our People 60 Stakeholder Engagement 64 Risk Management 66 ESG at Luberef 72 ESG Highlights 74 Committed to Upholding the Highest Standards of Corporate Governance 78 Board of Directors 80 Senior Executives 85 Board Committees 96 Compensation and Other Interests 102 Governance, Risk and Compliance 104 Dividend Policy 107 108 160 Table of Contents Overview ESG Review Financial Statements Strategic Review Corporate Governance Report Glossary / 54 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary 54Luberef Annual Report 2025
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Overview Chairman’s Statement 8 CEO’s Statement 10 Luberef at a Glance 12 Empowering Industry Through Every Grade 14 Performance Highlights 16 Where We Operate 18 Our Journey 20 Year in Review 22 Investment Case 24 Shareholder Information 30 7 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary6 Luberef Annual Report 2025
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Dear Shareholders, 2025 has been a year that once again confirmed the strength of Luberef’s strategy, people, and governance. Despite a complex operating environment marked by geopolitical tensions and changing global energy dynamics, Luberef delivered steady results and continued to build for the future. The Board remains focused on maintaining the highest standards of safety, reliability, and asset integrity while supporting the company’s growth and value creation. Through active engagement and strategic oversight, we ensure Luberef is dedicated, financially strong, and consistent with Saudi Arabia’s industrial vision. Luberef’s strategic direction is straightforward. We aim to consolidate our position as a leading base oil producer in the region, grow into a higher-value product portfolio, and support the development of a competitive lubricant ecosystem in the Kingdom and internationally. These priorities are designed to create long-term value for our shareholders and to contribute meaningfully to Saudi Vision 2030. Performance in a Dynamic Market In 2025, the global base oil market presented both challenges and opportunities, influenced by different macroeconomic and geopolitical developments across the broader oil and gas landscape. Through a measured and agile approach, Luberef navigated these conditions effectively, maintaining stable performance and demonstrating the resilience of its business model. Luberef maintains a clear competitive advantage, allowing it to capture value and deliver consistent results across changing market conditions. Chairman’s Statement Focused leadership, sustainable growth, and lasting vision. Strong Oversight and Effective Engagement The Board’s oversight in 2025 centered on the disciplined execution of the Company’s strategic initiatives, most notably the Growth II expansion project, which is entering a high intensity construction phase. This milestone will establish Luberef as the region’s only producer capable of supplying the full spectrum of base oil groups, reinforcing its status as a leading force in the high- performance lubricant market. Our commitment to clear communication and effective investor engagement was also recognized externally through the Tadawul Award for Best Investor Relations Program (Mid-Cap), reflecting Luberef’s ongoing efforts to maintain strong governance standards and transparent dialogue with the market. Sustaining Returns and Strategic Growth In line with our dividend policy, the Company distributed in 2025 ♥ 4.08 per share while maintaining a robust balance sheet, a gearing ratio of –10%, and a strong cash position. As we look ahead, the Board remains focused on maintaining a balanced financial approach that supports shareholder value while enabling future growth. We aim to deliver reliable returns to investors while preserving the financial flexibility to pursue strategic projects that strengthen Luberef’s long-term competitiveness. Net Income ♦ 855 Million Revenue ♦ 8,103 Million Safety, Sustainability, and Responsible Operations Safety, reliability, and sustainability remain integral to Luberef’s culture and its license to operate. In 2025, the Company continued to uphold world- class standards across all facilities, reflecting a strong safety culture, disciplined asset management, and a deep commitment to responsible operations. These principles guide how we create value, strengthen stakeholder trust, and contribute to the Kingdom’s long-term industrial and environmental goals. Acknowledgements and Outlook On behalf of the Board, I thank our management team and employees for their dedication, especially in completing the largest turnaround in Luberef’s history, which showcased strong teamwork and commitment. We are deeply appreciative of the continued trust and support of our shareholders, partners, and government stakeholders as we move confidently into the next phase of growth. Looking forward, Luberef enters 2026 from a position of strength. With a clear strategy, robust governance, and strong financial foundations, we are well placed to complete our next phase of growth and continue contributing to the Kingdom’s industrial transformation and long-term economic development. Mr. Ibrahim Q. Al Buainain Chairman Luberef’s strategic direction is straightforward. We aim to consolidate our position as a leading base oil producer in the region, grow into a higher-value product portfolio, and support the development of a competitive lubricant ecosystem in the Kingdom and internationally. / Chairman’s Statement 98 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Through disciplined execution, strong cost and logistics management, and an unwavering commitment to safe and reliable operations, Luberef delivered consistent performance even in a demanding environment. Building the Next Phase of Growth Several milestones in 2025 underscored our progress in executing our long-term strategy. During the year, we advanced in a collaborative project with Aramco aimed at integrating Luberef Group III products into the prestigious aramcoULTRA® base oil slate. This strategic initiative strengthens our global positioning and enhances product competitiveness. In parallel, we also made significant progress in advancing our plans to extend operations in Jeddah, supported by the endorsement of the Ministry of Energy. We are now in discussions with designated parties to ensure the long-term continuity and optimization of the facility. The continued operation of the Jeddah site will strengthen the diversity of Luberef’s asset base, enhance our geographical reach, and support a more balanced sales footprint. The Growth II project advanced steadily toward its construction and commissioning stages. Once operational in 2026, it will enable Luberef to further diversify its production of high-value base oils, enhancing our ability to meet a broad spectrum of customer needs across automotive, industrial, and specialty segments. Upon completion, the project will position Luberef as the region’s first producer capable of supplying the full range of Group I, II, and III base oils, offering customers a complete and integrated solutions portfolio. Dear Shareholders, 2025 was a pivotal year for Luberef. One focused on preparing for future growth while delivering resilient performance, underscored by an EBITDA of ♦ 1,148 million. This reflects the strength and stability of our core operations despite market volatility. This year included major planned activities, most notably the full turnaround of our Yanbu refinery and a catalyst replacement, both essential to supporting our long-term expansion plans. CEO’s Statement Executing with discipline, building capacity, and driving shareholder value. With a focus on next generation lubricants, we have taken steps towards the next wave of growth, GIII+, that support advanced applications and lower emissions. Luberef is also exploring new technologies to strengthen product performance and expand OEM approvals, ensuring our products meet the highest global standards and capture emerging opportunities in a rapidly evolving market. Downstream Excellence Our cost optimization program delivered tangible results through multiple contracts of affreightment and improved logistics efficiency, reinforcing our commitment to operational excellence and disciplined cost management. Downstream integration continues to progress through the LubeHub initiative in Yanbu. This industrial cluster is attracting local and international partners, creating a foundation for lubricant blending, specialty chemicals, and support services. Our partnership with APAR Industries is a key example of this progress. Together, these collaborations are helping to localize value chains, create jobs, and contribute to Saudi Arabia’s broader industrial goals. People and Sustainability Our people remain the driving force behind Luberef’s success. In 2025, we strengthened this foundation by expanding development programs across our operations and projects, reinforcing a culture of learning, collaboration, and accountability. Open communication and recognition continued to engage our teams and inspire them to deliver safe, high- quality performance across all facilities. Sustainability also remained central to our progress. Luberef maintained a Total Recordable Incident Rate of zero for the sixth consecutive year and mechanical availability of 99.1 percent, reflecting our strong safety culture and disciplined operations. Our continued efforts were recognized externally through the Silver Award for Corporate Social Responsibility from the Ministry of Human Resources and Social Development for the second consecutive year, a testament to our role as a responsible operator and contributor to national development. Advancing Forward Together As we move into 2026, our focus remains on completing Growth II safely and further optimizing our asset base to enhance flexibility, efficiency, and scale. We will continue to increase local content by supporting domestic suppliers and downstream partners, strengthening Luberef’s role in the Kingdom’s industrial development. At the same time, we will pursue new growth opportunities and leverage advanced technologies to enhance our product offering, while directing our portfolio toward high netback markets to sustain strong margins and long-term competitiveness. I would like to express my sincere appreciation to our employees for their commitment and professionalism, particularly during this important phase of growth. My thanks also go to the Board of Directors for their continued guidance. Together, we are building on Luberef’s solid foundations and advancing confidently toward a future defined by reliability, innovation, and sustainable growth. Samer A. Al Hokail President & Chief Executive Officer Through disciplined execution, strong cost and logistics management, and an unwavering commitment to safe and reliable operations, Luberef delivered consistent performance even in a demanding environment. ROACE 21% EBITDA ♦ 1,148 Million / CEO’s Statement 1110 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Luberef at a Glance Saudi Aramco Base Oil Company – Luberef JSC (“the Company”) – is one of the world’s largest producers of base oils and the sole producer of virgin base oils in the Kingdom of Saudi Arabia. With a heritage spanning nearly 50 years, Luberef produces Groups I & II of base oil, along with a range of byproducts that serve diverse industrial applications. Luberef operates two production facilities in Yanbu and Jeddah, with a combined base oil operating capacity of 1,455,000 MT. The Company’s products are supplied to customers domestically across Saudi Arabia and exported internationally to key markets in the Middle East, Africa, Asia, the Americas, and Europe. Our Core Values Our Mission To deliver excellence in refining and producing high-quality base oils and specialty products that meet the evolving needs of our customers and industries. Our Vision To be recognized as a global leader in premium base oils and specialty products, driving progress across key markets. Integrity Conducting business ethically and respectfully. Citizenship Contributing positively to society and upholding our social responsibility. Accountability Taking ownership of our actions and remaining responsible to our stakeholders. Excellence Delivering on our promises and striving to exceed expectations. Safety Protecting our people, assets, and communities through safe, reliable operations. / Luberef at a Glance 1312 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Empowering Industry Through Every Grade Group I Base Oils Proven Reliability for Industrial Performance Group III Base Oils Advancing Next- Generation Mobility Group II Base Oils Powering Efficiency and Cleaner Operations Luberef’s growth has been driven by decisive investment and a clear understanding of evolving industry needs. Building on earlier expansion phases that enhanced its scale and operational reliability, the Company continues to strengthen its position as a critical supplier to regional and global markets. The Growth II project accelerates this trajectory. It is a deliberate move to redefine Luberef’s role in the base oil value chain by expanding beyond capacity into full-spectrum capability. Within this portfolio, the Jeddah facility remains strategically important. As a producer of Group I base oils, it supports a specialized yet resilient segment where demand persists across key industrial and marine applications. Group I continues to offer essential formulation characteristics for certain customers, making its presence in Luberef’s portfolio both commercially and strategically sound. Luberef is therefore advancing the necessary milestones to ensure the continuity of the Jeddah facility beyond 2026, preserving portfolio breadth and sustaining long-standing customer relationships. Together, Growth II and the continued operation of Jeddah position Luberef as a true one-stop shop for base oils— delivering breadth of grades, consistent quality, and supply security under one integrated platform. These initiatives reflect Luberef’s ambition to lead the market, shape customer outcomes, and enable industries to move forward with confidence today and into the future. Group I base oils remain essential for applications that require durability and strong solvency, including marine lubricants, greases, metalworking fluids, and process oils. Luberef’s Jeddah facility, operational since 1977, produces approximately 275,000 metric tons per year of Group I base oils. Combined with Yanbu’s capacity at 270,000 metric tons, these products continue to serve as a dependable foundation for industrial sectors across the Kingdom, the wider MENA region, and global export markets. Group III base oils are high-purity products used in synthetic lubricants for hybrid vehicles, aviation, and advanced industrial systems. The Yanbu Growth II Expansion, expected to be operational in H2 2026, will add about 175,000 metric tons of Group III capacity and increase flexibility with Group II production. This development is set to advance Luberef’s move into premium, low-emission lubricants that support Saudi Vision 2030 and global mobility goals. Group II base oils are the standard for high-performance lubricants, offering improved oxidation stability, fuel efficiency, and lower emissions. They are essential for automotive engines, heavy transport, and power generation systems. Following the Yanbu Growth I Expansion, Luberef added 710,000 metric tons of Group II base oil capacity, which later increased to 910,000 metric tons through subsequent optimization of Group II capacity, positioning the company as a key regional supplier for advanced lubricants that meet tightening global environmental and efficiency standards. Group I Base Oils Capacity (MT) 545,000 Before Growth II 545,000 After Growth II Group II Base Oils Capacity (MT) 910,000 Before Growth II 815,000 After Growth II Group III Base Oils Capacity from Growth II (MT) — Before Growth II 175,000 After Growth II / Empowering Industry Through Every Grade 1514 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Performance Highlights Financial Sustainability Production & Sales Operational Revenue (2 Million) ROACE (%) Average 10 Year Crack Margin Chart (2 /MT) EBITDA (2 Million) Gearing (%) ‘23 ‘24 ‘25 8,103 10,036 9,489 ‘23 ‘24 ‘25 21 22 30 Base Oil Crack Margin (2 /MT) ‘23 ‘24 ‘25 1,911 1,703 2,068 ‘23 ‘24 ‘25 1,148 1,272 1,912 -10 -3 -1‘23 ‘24 ‘25 Byproduct Crack Margin (2 /MT) -43 ‘23 ‘24 ‘25 -22 22 Net Income (2 Million) ‘23 ‘24 ‘25 855 972 1,510 Cash Conversion (%) Cash Flows from Operating Activities (2 Million) ‘23 ‘24 ‘25 93 126 110‘23 ‘24 ‘25 1,518 1,808 2,322 Production Sales3 1,223 ‘23 ‘24 ‘25 1,102 1,295 1,251 1,044 1,280 Production Sales 398 ‘23 ‘24 ‘25 410 455 410 400 446 Production Sales 2,541 ‘23 ‘24 ‘25 2,373 2,742 2,550 2,350 2,746 ‘23 ‘24 ‘25 73 126 121 Production Sales 825 ‘23 ‘24 ‘25 692 840 841 644 834 ‘15 ‘17 ‘19 ‘21 ‘23 ‘24 1,791 Base Oil (Thousand MT) Group I Base Oil (Thousand MT) Group II Base Oil (Thousand MT) Group III4 Alliance (Thousand MT) Byproducts (Thousand MT) 3 Base Oil: Luberef own products only. 4 Alliance: Refers to sales conducted by Aramco Base Oil Alliance members (S-Oil and Motiva) within the Company’s designated zone, as well as base oil imported and sold in the local market by the Company. This also includes a small portion of sales from other base oil groups within the Alliance. Operating Capacity Base Oil (Thousand MT) Million Manhours with No LTI (Lost Time Injury) Operating Capacity Byproducts (Thousand MT) GHG Emissions (Tons CO2e) Mechanical Availability (%) CSR Beneficiaries Water Withdrawal (m3) Capacity Utilization (%) Total Number of Training Hours Provided to Employees Waste Water Discharge (m3) Unit Cost of Production (2 /MT) ‘23 ‘24 ‘25 1,455 1,455 1,455 ‘23 ‘24 ‘25 43+ 38+ 37+ ‘23 ‘24 ‘25 1,145,114 1,329,904 1,471,503 ‘23 ‘24 ‘25 20,000+ 13,000 15,000 ‘23 ‘24 ‘25 59,696 53,464 43,568 ‘23 ‘23 ‘24 2,833,171 2,434,903 2,952,897 ‘23 ‘24 ‘25 1,146,980 1,429,600 1,355,449 ‘23 ‘24 ‘25 2,830 2,830 2,830 ‘23 ‘24 ‘25 99.1 99.6 99.6 ‘23 ‘242 ‘251 82.2 90.3 90.9 ‘23 ‘24 ‘25 537 435 392 1 Adjusted for the turnaround and catalyst replacement. 2 Adjusted for 15 days shutdown for catalyst replacement. ‘23 ‘24 ‘25 73 126 121 Production Sales 2,541 ‘23 ‘24 ‘25 2,373 2,742 2,550 2,350 2,746 / Performance Highlights 1716 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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A Global Leader in Base Oils The Company’s products are sold both domestically and internationally, with a strong presence across the Middle East, Africa, Asia, the Americas, and Europe. Its customer base comprises leading regional and international companies across the lubricants and petroleum products sector, spanning manufacturers, distributors, and various end-users. Our Facilities Luberef operates two production facilities in Jeddah and Yanbu with a combined annual capacity of 1,455,000 metric tons. The Jeddah facility, commissioned in 1977, produces 275,000 metric tons of Group I base oils. The Yanbu facility, operational since 1997, has expanded through the Growth I project in 2017 to a capacity of 1,070,000 MT. This number was further increased to 1,180,000 MT, producing both Group I and Group II base oils. Aramco Base Oil Alliance Luberef operates as part of the Aramco Base Oil Alliance, which spans key global markets through three regional partners. Within this structure, Luberef serves as the exclusive marketer across the Middle East, including Pakistan and Africa. Its Alliance partners extend this reach globally, with Motiva covering North, Central, and South America, and S-Oil managing Europe and Asia (excluding the Middle East and Pakistan but including India). Together, the Alliance ensures a coordinated presence across all major base oil markets worldwide. Where We Operate With strategically located facilities and a strong footprint in key markets, Luberef empowers industries across the region and beyond, supplying high-quality base oils that drive performance, reliability, and growth. South Korea S-Oil Corporation Europe Managed by S-Oil Corporation USA Managed by Motiva Enterprises LLC USA Motiva Enterprises LLC South Africa Managed by a strategic partner Annual Production Capacity All Alliance members market their products under trademarks licensed by Saudi Aramco. UAE Managed by Production site Distribution site Alliance Maritime trade route Yanbu facility 1,180,000 MT Jeddah facility 275,000 MT / Where We Operate 1918 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Our Journey For nearly five decades, Luberef has been at the heart of Saudi Arabia’s industrial development, evolving from a local refining venture into a leading producer of high-quality base oils. Its history is defined by continuous innovation, operational excellence, sustainable growth, and enduring partnerships that have strengthened the Kingdom’s position in the global energy value chain. 1976 Established as the Petromin Lubricating Oil Refining Company, a joint venture between Petromin (70%) and Mobil (30%). 2007 Jadwa Investment acquired Mobil’s 30% shareholding, further strengthening local ownership and governance. 1977 The Jeddah refinery commenced operations with an initial capacity of around 180 thousand MT of Group I base oils. 2013 Enhanced integration between the Yanbu and Jeddah facilities increased total production capacity to approximately 575,000 MT of Group I base oils. 2017 Completion of the Yanbu Growth I Expansion added 710,000 MT of capacity, introducing Group II base oil production and significantly boosting total output. 2019 Formation of the Aramco Base Oil Alliance and adoption of Saudi Aramco trademarks strengthened alignment with the Group. 1996 Petromin’s ownership stake was transferred to Saudi Aramco, marking a new chapter in the Company’s governance and oversight structure. 1997 The Yanbu refinery was commissioned with a capacity of 300,000 MT, creating synergies that increased the Jeddah facility’s capacity to 260,000 MT and bringing Luberef’s total production to approximately 560,000 MT of Group I base oils. 1983–1991 The Jeddah facility underwent a series of expansions, boosting production capacity to approximately 240,000 MT. 2022 Successfully listed on the Saudi Stock Exchange (Tadawul), with the IPO ranked among the largest of the year and oversubscribed 29.5 times. 2023 Amended the Supplemental Feedstock Supply Agreement with Saudi Aramco, increasing RCO supply to Yanbu by 5 thousand barrels per day, boosted annual base oil output by 90 thousand MT. 2024 Received two MEIRA awards, including Most Improved Investor Relations Program in the GCC and Second Place for Leading Corporate Investor Relations Company in Saudi Arabia. 2024 Honored again with the Aramco President’s Excellence Award for Best Safety Performance (third consecutive year) and Best Reliability and Maintenance Performance (second time). 2025 Successfully completed the largest turnaround in Luberef’s history, enhancing reliability, efficiency, and long-term asset performance. 1970s Founding and Early Operations 2000s Strengthening Foundations and Local Ownership 2020s Recognition, Listing, and Continued Growth 1990s Capacity Growth and Ownership Transition 2010s Expansion and Organizational Progress / Our Journey 2120 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Year in Review January Strengthening Safety Leadership Luberef achieved ISO 45001 certification for its Health and Safety Management Systems, reaffirming its commitment to world-class safety practices. This certification reflects a proactive approach to risk management and a continued focus on creating safe, efficient, and reliable operations. February Recognition for Investor Transparency Luberef earned First Place in the Sultan Aldugaither Mid-Cap Investor Relations Program Award, in addition to being recognized as the Best Investor Relations Programme of the Year (Mid Cap) at the Saudi Capital Market Awards 2024. These recognitions demonstrate Luberef’s consistent communication and transparency with the investment community. May Advancing Inclusion and Equal Opportunity A cooperation agreement with Qaderoon marked an important step toward integrating individuals with disabilities into the workforce. The initiative supports Saudi Vision 2030 and reflects Luberef’s belief that diversity and inclusion are essential to long-term organizational strength. June Expanding Regional Reach Luberef signed a long-term supply agreement with a leading international oil company in Egypt, opening new growth opportunities across the African market. The partnership strengthens Luberef’s export base and supports its strategy to extend market presence beyond the GCC. August Enhancing Efficiency and Cost Stability Through a Contract of Affreightment with Bahri, Luberef optimized its shipping operations, improving cost predictability and supply reliability. September Strengthening Downstream Integration A new ultra-low-sulfur diesel (ULSD) sales agreement with Saudi Aramco expanded Luberef’s customer base under improved commercial terms. This milestone enhances by-product margins and supports greater integration across the energy value chain. October Social Efforts Recognition Luberef also received a Silver Award for Corporate Social Responsibility (CSR) from the Saudi Ministry of Human Resources and Social Development, marking the second consecutive year the company has been recognized for its community-focused initiatives December Jeddah Supply Extension Luberef has received notices from the Ministry of Energy regarding the continuation of the Jeddah feedstock allocation beyond 2026. This development supports the Company’s ongoing efforts to extend operations at the Jeddah facility and maintain its leadership position in the Group I base oils market. / Year in Review 2322 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Investment Case Business Model Highly Specialized Base Oil Producer with a Unique Regional Position As a pure-play base oil producer, Luberef holds a distinctive place in the regional and global industrial and lubricant landscape. Purpose-built facilities, deep technical expertise, and integration within Saudi Aramco’s network enable the company to operate at scale while maintaining a sharp focus on product quality, efficiency, and market responsiveness. Pure-play focus Dedicated facilities optimized exclusively for base oil production, unlike integrated refiners where base oils are a secondary output. This allows Luberef to operate at higher utilization rates throughout the year. Distinct market position With a production capacity of 1.455 million MT per annum, Luberef is the only virgin base oil producer in Saudi Arabia, and among the largest in the Middle East. Flexible production capacity The Yanbu Growth II Expansion is set to enhance capacity and flexibility across Group I, II, and III base oils. Global reach through the Aramco Base Oil Alliance Strategic collaboration with Saudi Aramco, S-Oil, and Motiva provides access to key markets worldwide. Production capacity 1.455 Million MT per annum Highly Specialized Base Oil Producer with a Unique Regional Position Advantaged Value Chain, Operational Efficiency, and Strong Customer Relationships Proven Growth Record and Expanding Market Opportunities Disciplined Financial Management, High Margins, and Attractive Returns Commitment to Environmental, Social, and Governance (ESG) Excellence / Investment Case 2524 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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910,000 After 2023 710,000 Before 2023 Proven Growth Record and Expanding Market Opportunities Decades of disciplined expansion have positioned Luberef for the next phase of growth. The Company continues to align its investments with market dynamics, focusing on higher-value base oils and emerging industrial applications that reflect global shifts toward advanced lubricants and cleaner technologies. Track record of expansion Major growth initiatives have increased production capacity and operational flexibility, including the Yanbu Growth I Expansion, which introduced Group II base oils and raised production capacity to 710,000 MT, later increasing further to 910,000 MT. Positioned for future demand Growing global demand for Group II and III base oils supports Luberef’s ongoing expansion. The recent 20-year land lease extension for the Yanbu facility secures the site for long- term capacity growth, while the LubeHub initiative enhances downstream integration and supports the development of a regional ecosystem for lubricant manufacturing. Innovation-driven development Continuous investment in process improvement and technology enhances Luberef’s competitiveness, demonstrated by major turnaround programs that upgrade assets and prepare operations for Group III base oil production. Advantaged Value Chain, Operational Efficiency, and Strong Customer Relationships Luberef’s value proposition is built on efficiency, reliability, and enduring partnerships. Its integrated supply chain and operational excellence ensure cost-effective production, while long-standing customer relationships and a prime geographic position support consistent global demand. Long-term feedstock security Reliable supply of high-quality, highly paraffinic feedstock from Saudi Aramco supports consistent production, cost competitiveness, and optimal base oil yields. Operational excellence High mechanical availability and optimized utilization drive industry- leading efficiency. This excellence results in production costs which are lower than global peers, excluding feedstock. Logistical advantage Red Sea facilities offer fast, cost-effective access to major export markets. Meanwhile, the alliance with Saudi Aramco, Motiva, and S-OIL are another key value driver in this area. Aramco ecosystem Operating within Saudi Aramco’s ecosystem provides Luberef with access to world-class expertise, global best practices, and strong commercial networks, enhancing its competitiveness and long- term business stability. Trusted partnerships Luberef has cultivated over 160 years of combined relationships with its top five business partners, reflecting the Company’s long-standing commitment to trusted, strategic partnerships. The 20-year ULSD supply agreement with Aramco, covering up to 6,500 barrels per day from the Yanbu facility, further demonstrates this strength. Strategic collaboration with Saudi Aramco, S-Oil, and Motiva provides access to key markets worldwide. Raised Production Capacity (MT) Strategic Approach Business Overview / Investment Case 2726 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Commitment to Environmental, Social, and Governance (ESG) Excellence Sustainability and responsible governance are embedded in Luberef’s operations, guiding its approach to safety, environmental stewardship, and community engagement. Environmental stewardship Committed to enhancing environmental performance through efforts to reduce emissions, improve resource efficiency, and limit flaring. Robust governance framework Transparent, independent governance aligned with international best practices. Experienced leadership A skilled management team ensures accountability and continuous improvement. Social responsibility Commitment to safety, inclusion, and positive community impact. Disciplined Financial Management, High Margins, and Attractive Returns Through prudent financial management and disciplined capital allocation, Luberef continues to deliver sustainable returns while maintaining operational resilience and efficiency. Prudent capital structure A conservative balance sheet with a gearing ratio of -10%, well below the target range of 25-35%, ensures financial stability, liquidity, and capacity for long-term value creation. High cash conversion and return on capital Strong cash conversion of 93% and a Return on Average Capital Employed (ROACE) of 21% demonstrate effective capital utilization and consistent value creation. Efficient asset base Preventive maintenance and disciplined asset management help keep maintenance Capex low, reflected in a sustaining Capex ratio of 3% of PPE. At the same time, a Return on PPE of 17.2% and a mechanical availability rate of 99.1% demonstrate efficient capital utilization and the reliability of Luberef’s asset base. Strong cost discipline Operational efficiency and capital prudence continue to support profitability and long-term shareholder returns. Capex ratio 3% Return on PPE 17.2% ESG Review CFO Review / Investment Case 2928 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 96,15 10000 10500 11000 11500 12000 12500 13000 60 70 80 90 100 110 120 Luberef Share Price TASI Index Shareholder Information Listing Details Listing Date December 22 Exchange Tadawul Ticker Code 2223 ISIN Code SA15M1HH2NH5 Number of Shares 168,750,000 Foreign Ownership of Total Float 1 5.17% Percentage of Investor Type2 Investor Relations Contact Fax +966 122685250 Telephone +966 920003550 Email ir@luberef.com Investor Engagement Sell Side Educational Session Location Date Attendance London June 15, 2025 62 Riyadh November 6, 2025 70 Shareholder Record Share Book Date 03 February 2025 03 March 2025 06 April 2025 20 April 2025 08 May 2025 02 June 2025 02 July 2025 04 August 2025 02 September 2025 05 October 2025 02 November, 2025 02 December, 2025 Financial Calendar Date Name 17 February FY 2024 Annual Financial Results and Dividend Announcement 17 April Results of the EGM 30 April H2 2024 Dividends Distribution 4 May Q1 2025 Financial Results Publication 3 August Q2 2025 Financial Results Publication 15 October H1 2025 Dividends Distribution 2 November Q3 2025 Financial Results Publication Conferences Attended 1 Annual average. 2 % of free float. 3 As of 31 December 2025. Corporate Investors 47% Individual Investors 53% Foreign Investors 22% Local Investors 78% Stock Prices3 Earnings Calls 4 8 Sell Side Coverage New Investors Met 42 Investors Engaged 252 Pre-Announcement Calls 48 Education Sessions 2 35 Issued Reports Conferences Attended 9 Request Reason: Analysis Dividends January Citi’s Emerging Conference incorporating MENA Day London June HSBC GCC Exchange London Conference London February Saudi Capital Market Forum Riyadh September The EFG Hermes 11th Annual London Conference London April 19th Annual EFG Hermes One on One Conference Dubai September 2025 MEIRA Annual Conference Muscat May Bank of America Emerging Markets Corporate Conference Miami November Bank of America Merrill Lynch MENA Conference 2025 Riyadh October JP Morgan Saudi Arabia Investment Forum New York / Shareholder Information 3130 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Strategic Review Business Model 34 Strategic Approach 36 Strategy in Action 38 Supporting Vision 2030 40 Market Review 42 CFO Statement 44 Business Overview 50 Operational and Safety Review 56 Our People 60 Stakeholder Engagement 64 Risk Management 66 Luberef Annual Report 2025 3332 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Business Model Creating Value for Our Stakeholders Business Activities • Base oil production • Base oil marketing • Localization and attracting foreign investment to Kingdom • Supply chain logistics • By-product sales • R&D through collaboration Supply Chain Enablement • Feedstock sourcing – Reduced Crude Oil (RCO) – Heavy Vacuum Gas Oil (HVGO) • Integrated logistics infrastructure – Vessels, pipelines, storage tanks, and road transport Value Creation Across the Chain • Conversion of low value feedstock into high value premium base oils • Efficient production supported by integrated assets and logistics • Global market access through the Aramco Alliance distribution network • Shareholders Driving long-term value through sustainable financial performance, disciplined growth, strong governance, and transparent disclosures. • Employees Providing a safe and inclusive workplace, fair pay and benefits, and opportunities for training and career development. • Communities Supporting social and economic development through community initiatives, education programmes, and local partnerships. • Government and Regulators Ensuring full regulatory compliance while contributing to national development and environmental priorities. • Customers Supplying high-quality premium base oils, reliable availability, and responsive technical and logistics support. • Suppliers Building ethical, transparent partnerships that promote performance, innovation, and responsible sourcing. Inputs Outputs Heavy Vacuum Gas Oil (HVGO) Feedstock Refining Base Oils Distribution Vessels/ trucks/ pipelines/ tanks Sell products through the Alliance Reduced Crude Oil (RCO) Human Capital Total Еmployees 632 Workforce Covered by Certified HSE Systems 100% Feedstock (Thousand MT) RCO & Other 3,487 Financial Capital (♦ Million) CAPEX 444 Total Cash 1,373 Property, Plant & Equipment 4,918 Human TRIR Zero Environmental Sustainability GHG (Tons CO2e) 1,145,114 Financial (♦ Million) Net Income 855 Free Cash Flow 1,073 Dividends Paid 686 ROACE 21% Operations (Thousand MT) Types of Products: Base Oil Production 1,044 By-product Production 2,350 Social Impact Initiatives 20+ Beneficiaries 20,000+ Volunteering Hours 400+ CSR Engagements 20+ Manufactured Capital Production Capacity (Thousand MT) Jeddah Refinery 275 Yanbu Refinery 1,180 Saudization 84% Female 7% Million Manhours without LTI 43.3 Water Withdrawal (m3) 2,833,171 Waste Water Discharge (m3) 1,146,980 / Business Model 3534 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Implementing the Transition to Higher-Value Base Oils As global demand shifts from traditional Group I base oils toward higher-quality Group II and Group III products, Luberef is executing a focused strategy to enhance operational efficiency and upgrade its product portfolio. In parallel, the Company maintains a strategic commitment to supplying Group I base oils for as long as demand persists, leveraging its unique strengths in Group I production. This balanced approach positions Luberef at the forefront of the industry’s structural transformation, reinforcing its role in advancing the global lubricants and base oil market. This direction aligns with Luberef’s mission to achieve excellence in producing base oils and specialty products for key end-markets while realizing its vision to become a leading global supplier of premium, high-performance solutions. Growth Platforms for the Future The Yanbu Growth II project is a cornerstone of Luberef’s strategy, increasing the facility’s total base oil capacity to 1.26 million metric tons and enabling flexible switching between Group II and Group III production based on market demand. This flexibility, combined with LubeHUB, expanded OEM approvals, and diversification into white oils and transformer oils, positions Luberef to capture long-term value as the market evolves. Base Oil Focus Luberef operates as a pure-play base oil producer, optimizing output and efficiency regardless of fuel market dynamics. The Company consistently targets utilization rates above 90%, well above the global base oil industry average of around 50-60%, while maintaining a production cost approximately 60% lower than international peers. Strategic growth is driven by expanding production of high-value Group III and Group III+ base oils while preserving operational flexibility and presence in Group I markets. Access to nearby advantaged Arab Light feedstock and integration within the Aramco ecosystem enhances yield, feedstock security, and cost competitiveness. Strategic Approach Unique Market Positioning As the sole producer of virgin base oils in Saudi Arabia, and the only regional supplier positioned to produce all three base oil groups upon completion of the Yanbu Growth II Expansion, Luberef holds a distinctive and strengthening position in the global market. In addition, securing and expanding OEM approvals remains a key strategic focus, enabling entry into higher-value lubricant applications and markets. The Company continues to strengthen its presence in high-netback export markets, particularly in Africa and the Indian subcontinent, supported by its strategic Red Sea location. Furthermore, localization initiatives, including the LubeHUB industrial cluster, reinforces Luberef’s role as a cornerstone of Saudi Arabia’s downstream development. Other Strategic Initiatives Complementing its core base oil strategy, Luberef pursues targeted initiatives in technology, localization, and sustainability. Through collaboration with industry and research partners such as KAUST (King Abdullah University of Science & Technology), the Company is advancing innovation and product diversification. In 2025, Luberef integrated GHG Scope 1 and 2 emissions reporting into corporate KPIs, enhancing environmental performance oversight. The Company is also evaluating re-refining and recycling opportunities as local waste management frameworks evolve, alongside continued investment in AI to improve operational efficiency and decision-making. With the Jeddah facility approaching the next phase of its lifecycle, Luberef’s management is assessing opportunities to leverage the site for environmentally and technologically driven projects. These initiatives aim to unlock low-cost, high-return opportunities that align with the Company’s sustainability objectives and long-term value creation strategy. Our Strategy Three Pillars for Sustainable Growth Luberef’s strategy is built around three integrated pillars that guide value-driven investment decisions across the business. Strategic Initiatives Unique Market Positioning Base Oil Focus Luberef Annual Report 2025 / Strategic Approach 3736 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Optimum Production 175 GIII 815 GII (Thousand MT) Strategy in Action Luberef continues to advance its strategy through disciplined growth, innovation, and sustainability. Major projects such as the Yanbu Growth II Expansion and the planned Group III+ study in Jazan are aimed at expanding capacity, increasing flexibility, and positioning the Company to capture value in premium global markets. Group III+ Project Luberef signed an MOU with Aramco to evaluate establishing a facility for GIII+ production in Jazan. The efforts of sourcing UCO resulted in this ambition. By adopting a less capital-intensive configuration that relies on UCO as a feedstock, the project minimizes by-product generation while prioritizing base oil output. The project is designed to produce premium Group III+ base oils, targeting customers in developed countries and emerging markets. These premium products will be supported by all major OEM approvals and formulations, designed to meet stringent quality requirements in high- margin markets. This supports attractive returns on investment and reinforces Luberef’s strategy of growth, portfolio enhancement, and capital efficiency. LubeHUB, located adjacent to the Yanbu facility, is a key enabler of downstream localization. Through piped access to base oils and specialty feedstocks, the hub supports efficient production of finished lubricants, transformer oils, white oils, rubber process oil, additive manufacturing, and specialized bitumen. Aligned with Vision 2030, LubeHUB aims to localize specialty product manufacturing, reduce imports, and increase job creation. In parallel, Luberef is evaluating white oil opportunities to diversify into high-purity applications such as pharmaceuticals, cosmetics, food processing, and industrial uses, further strengthening its specialty portfolio. The Yanbu Growth II Expansion is a cornerstone of Luberef’s strategy to enhance operational flexibility. Once operational in 2026, the project will raise the Yanbu facility’s total capacity to 1.26 million metric tons per year, enabling production of up to 670,000 metric tons of Group III base oils or up to 1,120,000 metric tons of Group II base oils, depending on market demand. In 2025, Luberef successfully embarked on the GIII slating program under AramcoULTRA brand name, marking a critical quality milestone. Following Growth II completion, domestic Group III production will replace resale volumes currently sourced from Alliance partners. The Company is also advancing a Group III/III+ project, targeting premium export markets in Europe and the United States and reinforcing Luberef’s long-term growth trajectory. Yanbu Growth II Project and Transformation Strengthening Presence Across the GCC Region As part of its regional growth strategy, Luberef is expanding its footprint across the Gulf Cooperation Council (GCC) region by deepening relationships in established markets while actively engaging with new customers in previously untapped GCC countries. This approach reflects the Company’s agility in responding to evolving regional demand and its commitment to serving a broader customer base with tailored solutions. By leveraging its proximity to key GCC markets, strong supply reliability, and flexible product slate, Luberef is well positioned to support lubricant manufacturers, industrial customers, and energy- related sectors across the region. Ongoing commercial outreach, coupled with technical engagement and customized offerings, continues to strengthen Luberef’s market access and reinforce its role as a preferred regional supplier. Strengthening Global Credibility through OEM Approvals Securing Original Equipment Manufacturer (OEM) approvals remains a key strategic priority, reinforcing Luberef’s reputation as a trusted supplier of high-performance base oils. Certified formulations have increased from fewer than 100 to over 1,000, with a target of more than 2,000 by 2027. These approvals validate compatibility with advanced automotive, industrial, and specialty applications, positioning Luberef as a preferred supplier for global manufacturers. They also strengthen long-term partnerships and enable access to high-value and emerging markets where product quality and reliability are paramount. Expanding into African Growth Markets Luberef’s expansion strategy in Africa aligns with Saudi Arabia’s Empowering Africa initiative, which promotes industrial and infrastructure development across the continent. Rapid economic growth and increasing demand from transportation, mining, and manufacturing sectors are driving the need for high-quality lubricants and base oils. Leveraging its strategic Red Sea location, Luberef offers reliable and cost-effective supply to African markets, addressing a growing supply gap caused by declining European base oil exports. The Company aims to make Africa the third largest market for its products by selling approximately 200,000 MT per annum in that market by 2030. To enhance distribution efficiency and ensure reliable delivery, Luberef is leasing logistics facilities in key gateway countries. These hubs improve access to major trade routes while reducing delivery times and transportation costs. By marketing products in U.S. dollars to global distributors and international oil company–affiliated blenders, Luberef secures stable revenues and establishes a scalable platform for long-term growth across the continent. Expanding Market Access and Geographic Reach Luberef continues to strengthen its local and global presence through a dual focus on certification excellence and geographic expansion, reinforcing its position as a reliable and competitive supplier across key regional and international markets. At the same time, initiatives in localization, digitalization, and portfolio diversification, supported by LubeHUB and partnerships with leading research institutions, are enhancing efficiency and competitiveness. Together, these initiatives strengthen Luberef’s ability to adapt, sustain growth, and lead in a rapidly evolving industry. Innovation, Sustainability, and Growth Platforms Luberef embeds innovation and sustainability at the center of its growth strategy, driving technological advancement and long-term competitiveness. Through partnerships with leading academic and industry institutions such as KAUST and the FLEET Consortium, the Company continues to develop and implement next-generation refining technologies. Key initiatives, including Ultrasonically Assisted Oxidative Desulfurization (uODS) and advanced fuel formulations, delivered strong KPI achievements in 2025 during the research phase in 2025. The uODS technology received international recognition at two global events, most recently winning a Gold Medal at the International Inventions Conference in Geneva in April 2025, underscoring Luberef’s commitment to developing cleaner, higher- performance products that support global efficiency and emissions-reduction objectives. Maximum Production 670 GIII & 0 GII or 1,120 GII & 0 GIII (Thousand MT) Luberef Annual Report 2025 / Strategy in Action 3938 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Human Capital and Saudization In line with Vision 2030’s emphasis on national talent development, Luberef has advanced workforce localization and capability building. The Company has achieved an 84% Saudization rate, earning Platinum status under Saudi labor laws. Additionally, through the Luberef Leadership Center, we identify and develop local talent to support a sustainable succession of future Saudi leaders. Supporting Vision 2030 Luberef’s alignment with Saudi Vision 2030 is central to its corporate strategy, with a clear focus on economic diversification, industrial localization, and environmental stewardship. The Company is positioned as an enabler of the Kingdom’s energy and industrial transformation by moving beyond the export of raw materials and supporting the development of a more advanced downstream ecosystem. Economic Resilience and Portfolio Upgrading Industrial Diversification Through LubeHub A core element of Luberef’s Vision 2030 alignment is the LubeHub initiative in Yanbu, a purpose-built “Value Cluster Park” designed to create a localized industrial and job-creation cluster adjacent to Luberef’s production assets. Localization of Finished Products Attracting Investment Economic Impact LubeHub provides third- party manufacturers (investors) with direct access to base oils through a piped feed, enabling domestic production of downstream products such as finished lubricants, transformer oils, white oils, rubber process oil, additive manufacturing, and bitumen. The hub has secured conditional agreements and memorandums of understanding with international partners, including APAR Industries for localized transformer oil production and Valvoline for the establishment of a localized finished lubricants plant. By supporting local manufacturing, LubeHub is intended to reduce reliance on imports, stimulate domestic demand, encourage exports of high-value finished products, and create employment opportunities in line with national industrial objectives. Sustainability and the Saudi Green Initiative Luberef’s sustainability agenda aligns with the Saudi Green Initiative and Vision 2030 environmental targets. Decarbonization: In 2025, the Company added GHG Scope 1 and Scope 2 reporting to its corporate KPIs, reinforcing emissions tracking and energy efficiency focus. Innovation: Collaboration with KAUST, including exploration of Ultrasonically Assisted Oxidative Desulfurization (uODS), supports the development of low-sulfur products and strengthens technical competitiveness. Circular economy: Luberef is evaluating re-refining and recycling opportunities as national waste management legislation matures. Luberef contributes to Saudi Arabia’s diversification and industrial development under Vision 2030, supporting growth in the downstream and manufacturing sectors. The Company is expanding its base oil portfolio through the inclusion of Group III production under the Yanbu Growth II project, while continuing Group I and GII operations. This balanced approach underscores the Company’s flexibility and agility in addressing evolving market needs, with a strategic focus on higher- value segments and enhanced competitiveness in premium global markets, alongside sustained production to serve a diverse customer base. Luberef is also expanding into high- growth regions such as Middle East, Africa, and emerging markets, leveraging the Kingdom’s strategic logistics advantage. These efforts reinforce Saudi Arabia’s role as a leading global base oil supplier and strengthen its position in the evolving energy and industrial landscape. Luberef Annual Report 2025 / Supporting Vision 2030 4140 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Market Review The global base oil and lubricants market in 2025 demonstrated resilience amid heightened geopolitical volatility, evolving trade dynamics, and structural shifts across the energy sector. While external uncertainty influenced short-term market conditions, it also reinforced the relative stability of base oils compared with traditional fuel refining, supporting a constructive outlook as the industry moves into 2026. Structural Shifts in the Base Oil Sector Global Macroeconomic and Energy Landscape Global GDP growth reached approximately 3.0% in 2025 and is expected to moderate slightly to around 2.9% in 2026. Growth continues to be supported by recovering industrial production, infrastructure investment, and robust momentum across emerging markets, particularly in Asia and the Indian subcontinent. Advanced economies are expected to expand more slowly, resulting in a mixed but broadly supportive global outlook. Energy markets in 2025 were shaped by geopolitical tensions and trade policy shifts, contributing to volatility in fuel and petrochemical prices during the first half of the year. Following OPEC+ decisions to increase crude oil production, feedstock prices softened, improving crack margins for base oil producers in the latter part of the year — a trend expected to continue into 2026. Over the medium term, global GDP is forecast to grow at a CAGR of 2.7–2.9%, supported by technological advancement, supply chain realignment, and a gradual transition toward lower-carbon economies. These forces are expected to continue driving demand for higher-quality, more efficient, and increasingly sustainable lubricant solutions. The global base oil market is undergoing a structural transformation, marked by a clear shift from Group I toward higher-quality Group II and Group III base oils. Group I base oils continue to decline, with projected negative CAGR of approximately 2–3% over the next five years, as regulatory standards tighten and customers shift toward higher-performance alternatives. Over the next five years, demand for Group I is expected to decline at a CAGR of –2 to –3%, while Group II and Group III base oils are projected to grow at 3–5% CAGR. Group II grades are increasingly used in heavy-duty engine oils and industrial equipment, while Group III products are becoming the preferred choice for modern automotive and high-performance applications, thanks to their superior oxidation resistance, lower volatility, and thermal stability. In parallel, bright stock continues to play a vital role in industrial and marine lubricants as well as grease manufacturing. However, limited refinery investment and capacity closures have constrained global supply, supporting higher prices and underscoring its continued strategic importance. At the industry level, producers are optimizing their portfolios toward pure-play base oil models, achieving economies of scale, while pursuing OEM approvals and additive collaborations to ensure compliance with performance and emission standards. Sustainability considerations — including energy efficiency, emissions management, and waste minimization — are now firmly embedded in sectoral strategy. 5 Years Global Demand CAGR 2026–2031 Group I (2 – 3%) Group II 4 – 5% Group III 3 – 4% Outlook Looking ahead to 2026, the base oil market remains structurally attractive. Continued upgrading toward higher Groups, improving feedstock dynamics, and the expansion of downstream ecosystems are expected to sustain industry profitability. With its advantaged feedstock, flexible operations, and expanding presence in growth markets, Luberef is well-positioned to capture long-term value and maintain leadership in the global base oil sector. Saudi Arabia and Vision 2030 Saudi Arabia’s economy continued to expand in 2025, supported by Vision 2030-driven diversification, robust industrial activity, and sustained infrastructure investment. These trends are driving growing domestic demand for advanced lubricants. Regional Market Dynamics Asia-Pacific remains the largest and most dynamic base oil market globally, supported by industrial growth, expanding vehicle fleets, and rising quality standards. While near-term pricing has been influenced by supply overhangs and muted demand in some markets, seasonal manufacturing cycles and continued upgrading toward higher Groups provide underlying support. The region’s accelerated shift from Group I to Group II and III base oils reinforces its role as a global hub for premium base oil production and consumption. Initiatives such as the LubeHUB in Yanbu are accelerating the localization of specialty manufacturing by attracting lubricant blenders and specialty product producers. This model supports the development of a broader industrial ecosystem, creating jobs and advancing Saudi Arabia’s position in the global base oil value chain. Annual Production Capacity Yanbu facility 1,180,000 MT Jeddah facility 275,000 MT Luberef Annual Report 2025 / Market Review 4342 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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EBITDA for the year stood at ☻ 1.1 billion, reflecting a 10 percent decline year on year. This reduction was less pronounced than the decrease in sales volumes, which declined by approximately 15 percent, highlighting the resilience of Luberef’s margin structure, effective cost management, and the benefit of stronger crack margins during the year. Earnings per share amounted to ☻ 5.08, decreasing by 12 percent year on year. While EPS was impacted by lower volumes, it continued to reflect the underlying strength of our core business, supported by margin resilience, disciplined operating cost control, and the continued efficiency of our asset base. Return On Average Capital Employed (ROACE) stood at 21 percent, compared to 22 percent in the prior year. ROACE remained at a healthy level, underscoring the quality of Luberef’s assets and the Company’s continued focus on efficient capital deployment in a normalized pricing environment. Sales, Production, and Margins During 2025, base oil sales volumes reached 1,102 thousand metric tons, a 15 percent decrease year-on-year, largely attributable to the planned turnaround executed to ensure long-term asset integrity, operational reliability, and adherence to the highest global safety standards. While volumes were temporarily impacted, this intervention was essential to safeguarding sustainable operations over the long term. Base-oil crack margins averaged ☻ 1,911 per ton, representing a 12 percent year-on-year increase, supported by lower feedstock prices and effective CFO Statement Resilient and sustainable value creation. commercial optimization. This improvement in margins partially offset the impact of reduced sales volumes and reflects Luberef’s ability to adapt to changing market conditions. Cash Flow, Liquidity, and Capital Allocation Operating cash flow for the year amounted to ☻ 1.5 billion, reflecting a 16 percent decrease year-on-year, primarily due to lower earnings and working capital movements associated with the turnaround and market volatility. Free cash flow for the year stood at ☻ 1.1 billion, compared to ☻ 1.6 billion in 2024. The year-on-year decrease was primarily due to higher cash outflows related to Growth II capital expenditure and scheduled turnaround expenses. Cash conversion remained strong at approximately 93 percent, supported by resilient operating cash generation and disciplined working capital management during the year. Luberef maintained a strong balance sheet, underpinned by conservative liquidity management and a prudent capital structure. The Company ended the year with a gearing ratio of -10 percent, providing continued flexibility to fund strategic growth initiatives while supporting sustainable shareholder returns. Capital Expenditure and Strategic Investment Capital expenditure increased in 2025 as activities related to the Growth II project advanced, including procurement and early execution works. Cash Conversion 93% Earnings per Share 5.08 Net cash outflows from investing activities amounted to ☻ 378 million, reflecting the phasing of Growth II project and scheduled turnaround expenses. Managing Risk and Enhancing Resilience Throughout the year, we actively managed operational and market risks arising from logistics disruption, freight cost volatility, and global supply chain constraints. A key development in 2025 was the reduction in freight exposure through the execution of affreightment agreements, which improved cost visibility, mitigated volatility, and strengthened supply reliability for our customers. Shareholder Value and Financial Discipline At the core of our financial strategy remains a commitment to sustainable shareholder value creation. In 2025, we continued to balance cash returns to shareholders with reinvestment in strategic growth, ensuring that capital allocation decisions support both near-term resilience and long-term value generation. Outlook Looking ahead, Luberef enters 2026 with a strengthened operational foundation following the completion of the planned turnaround and continued progress on Growth II. While market conditions are expected to remain dynamic, our strong balance sheet, resilient margins, and disciplined execution position us to navigate volatility and deliver sustainable long-term returns for our shareholders. Saud Fouad Kamakhi Chief Financial Officer Luberef maintained a solid financial position, supported by disciplined financial management, resilient margins, and continued progress on our strategic growth agenda. Dear Shareholders, It is my pleasure to present Luberef’s financial performance for the year ended December 31, 2025. Throughout the year, we operated in a complex market environment shaped by volatility in global trade routes, evolving industry dynamics, and internal operational milestones. Against this backdrop, Luberef maintained a solid financial position, supported by disciplined financial management, resilient margins, and continued progress on our strategic growth agenda. Financial Performance Overview In 2025, Luberef generated total revenue of ☻ 8.1 billion, compared to ☻ 10.0 billion in the prior year. Net income for the year amounted to ☻ 855 million, representing a 12 percent year-on-year decrease, primarily driven by lower sales volumes following the planned turnaround, partially offset by improved base oil crack margins and continued cost discipline. Luberef Annual Report 2025 / CFO Statement 4544 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Financial Performance Luberef’s financial performance in 2025 reflects the impact of planned operational activity alongside resilient underlying fundamentals. During the year, base oil sales volumes declined in line with lower production resulting from the planned turnaround, while revenue amounted to ☻ 8.1 billion, compared to ☻ 10.0 billion in the prior year. Profitability was affected by lower sales volumes and reduced by-product contribution. EBITDA amounted to ☻ 1.1 billion, while net income reached ☻ 855 million. These impacts were partially mitigated by improved base oil crack margins, supported by lower feedstock prices and effective commercial optimization. Operating cash flow remained robust at ☻ 1.5 billion, reflecting disciplined working capital management. Free cash flow amounted to ☻ 1.1 billion, while the Company maintained a solid financial position, supported by prudent liquidity management and continued investment in strategic growth initiatives. Business Results, ♦ Million Description % Change 2025 2024 2023 2022 2021 Revenue (19%) 8,103 10,036 9,489 10,614 8,847 Cost of Sales (20%) (6,925) (8,700) (7,630) (8,180)1 (6,805) Gross Profit (12%) 1,179 1,336 1,858 2,4341 2,042 Operating Profit (11%) 890 1,001 1,590 2,171 1,756 Net Profit for the Year (12%) 855 972 1,510 1,978 1,503 Total Comprehensive Income (11%) 871 976 1,460 2,021 1,471 Statement of Cash Flows, ♦ Million Description % Change 2025 2024 2023 2022 2021 Profit before Zakat and Income Tax (12%) 874 988 1,579 2,132 1,691 Cash Generated from Operations (15%) 1,517 1,793 2,334 2,255 1,845 Net Cash from Operating Activities (16%) 1,518 1,808 2,322 2,017 1,816 Net Cash from Investing Activities (139%) (378) 977 (1,691) (49) (222) Net Cash from Financing Activities 66% (887) (2,596) (1,997) (1,405) (916) Net Increase / (Decrease) in Cash 33% 252 189 (1,366) 563 677 Cash at Reporting Date 34% 987 735 546 1,912 1,350 Comparison of Assets and Liabilities, ♦ Million Description % Change 2025 2024 2023 2022 2021 Current Assets (12%) 2,504 2,836 3,885 3,695 3,108 Non-Current Assets 4% 5,103 4,903 4,971 4,950 5,256 Total Assets (2%) 7,606 7,739 8,856 8,645 8,364 Total Equity 4% 4,582 4,397 4,869 5,083 4,245 Current Liabilities (8%) 1,842 2,011 1,701 1,216 1,494 Non-Current Liabilities (11%) 1,182 1,331 2,286 2,346 2,626 Total Liabilities (10%) 3,024 3,342 3,988 3,562 4,120 Total Equity and Liabilities (2%) 7,606 7,739 8,856 8,645 8,364 1 Restated. Dividends Declared and Distributed, ♦ Million Description % Change 2025 2024 2023 2022 2021 Net Profit before OCI (12%) 855 972 1,510 1,978 1,503 Dividends Paid (53%) 686 1,447 1,683 1,264 1,023 Overview of Total Debt Portfolio as of December 31, 2025, ♦ Thousand ♥ Original Loan Amount Beginning Balance Additions During the Year Repayments During the Year Non-cash Additions During the Year Ending Balance Period of the Loans (Years) Long Term 2,250,000 901,509 - (169,441) 53,103 785,171 9 Finance Lease N/A 169,316 16,892 (31,379) 9,063 163,892 N/A Total 2,250,000 1,070,825 16,892 (200,820) 62,166 949,063 Luberef Annual Report 2025 / CFO Statement 4746 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Statutory Levies Paid and Outstanding (FY 2025), ♦ Thousand Item 2025 Paid 2025 Outstanding Zakat 25,788 24,652 Others 51,555 4,055 Total 77,343 28,707 Note: Others includes, but is not limited to, GOSI, VAT, customs duties, withholding tax, labor office fees, and visa and passport costs. Employee-related Investments and Reserves, ♦ Thousand Item 2025 2024 End of Service Benefit 145,368 138,550 Post Retirement Medical Benefits 204,231 206,716 Long Term Service Awards 685 941 Early Retirement Program 0 0 Savings Plan 80,330 72,100 Total 430,614 418,307 During this year, KPMG Professional Services Company is appointed as the Company’s External Auditor with a fee of (SAR 600,000) for the annual financial statements and (SAR 110,000) per quarter for quarterly reviews. Current Assets Current assets declined from SAR 2,836 million to SAR 2,504 million, representing a 12% decrease. The movement primarily reflects working-capital changes associated with the planned turnaround, which temporarily reduced sales activity and, in turn, lowered accounts receivable and inventory levels. Non-Current Assets Non-current assets increased by 4%. The uplift primarily reflects ongoing capital expenditure related to the Growth II project and scheduled turnaround activities, including the replacement of catalyst. Total Debt Portfolio as of December 31, 2025 Broken Down by Lender Lending Party Amounts in (♦ 000) % Banks 785,171 83% Financial Leases 163,892 17% Total 949,063 100% Current Liabilities Current liabilities decreased by 8% driven by lower trade payables and accruals following reduced feedstock prices and lower operating activity due to planned turnaround. Non-Current Liabilities Non-current liabilities decreased by 11% primarily due to scheduled repayments of long-term borrowings. Free Cash Flow (FCF) Free cash flow decreased from ☻ 1,606 million to ☻ 1,073 million, due to a decrease in the cash from operations mainly reflecting higher cash outflows related to Growth II capital expenditure and scheduled turnaround expenses. Net Free Cash Flow from Financing Activities Net free cash flow from financing activities decreased by ☻ 1,709 million compared to 2024, from ☻ 2,596 Mn to ☻ 887 million. This occurred due to voluntary early repayment of the long term loan in 2024 and higher dividends paid. Revenue In 2025, Luberef recorded revenue of SAR 8.1 billion, compared to SAR 10.0 billion in 2024. The decline was primarily driven by lower base oil and by-product sales volumes resulting from planned turnaround activities and shutdowns. This impact was partially offset by a strategic focus on maximizing higher-margin local sales, which helped improve overall netbacks. Operating Profit In 2025, Luberef recorded an operating profit of ☻ 890 million, compared to ☻ 1,001 million in 2024. The change was mainly driven by lower sales volumes and softer by-product contribution, partially offset by stronger base oil crack margins and cost optimization and discipline. ROACE In 2025, Luberef’s ROACE was 21%, compared to 22% in 2024. ROACE remained supported by the quality and efficiency of the asset base. Gearing As of December 31, 2025, Luberef’s gearing ratio stood at -10%, compared to -3% in 2024. The improvement reflects continued debt repayments and a strong liquidity position, supported by disciplined cash management. Luberef Annual Report 2025 / CFO Statement 4948 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Products overview and properties Group Trademark Key properties Products Group I Base Oil Good viscosity index aramcoDURA 150 aramcoDURA BS 150 aramcoDURA 500 Group Il Base Oil Good viscosity index, low sulfur aramcoPRIMA 70 aramcoPRIMA 230 aramcoPRIMA 110 aramcoPRIMA 500 Group III Base Oil 1 Excellent viscosity index, low sulfur aramcoULTRA 2 aramcoULTRA 6 aramcoULTRA 4 aramcoULTRA 8 Business Overview As the sole producer of virgin base oils in Saudi Arabia, Luberef operates at scale as one of the world’s largest base oil manufacturers. Product Overview Base oils differ in their physical and chemical characteristics, with properties such as viscosity and thermal stability defining performance and quality. Each base oil product is identified by two key elements: grade and group. The grade, indicated by a number in the product name, reflects viscosity, while the group is determined by the oil’s technical specifications in accordance with American Petroleum Institute (API) standards. Established in 1976, the Company operates two production facilities in Yanbu and Jeddah, delivering a combined annual nameplate capacity of approximately 1.455 million metric tons of Group I and Group II base oils. Luberef’s products support essential automotive, marine, and industrial applications for a broad customer base that includes Petro Lube (formerly Petromin Corporation); the Arabian Petroleum Supply Company (APSCO); Alhamrani Fuchs Petroleum Saudi Arabia Ltd; Al Jomaih and Shell Lubricating Oil Company Limited; ENOC Lubricants and Grease Manufacturing Plant LLC; and companies within Saudi Aramco’s Group. Luberef is also a member of the Aramco Base Oil Alliance, alongside S-Oil and Motiva, assisting international trade through exclusive regional marketing rights and strengthening its global market reach. Group I and Group II Base Oils Luberef produces a range of Group I and Group II base oils to meet diverse automotive, marine, and industrial requirements. The Company manufactures three grades of Group I base oils under the aramcoDURA™ brand: aramcoDURA™ 150, aramcoDURA™ 500, and aramcoDURA BS™ 150 . The Jeddah facility produces aramcoDURA™ 150 and aramcoDURA™ 500, while the Yanbu facility manufactures aramcoDURA BS™ 150 and partial quantities of aramcoDURA™ 150. These Group I products are primarily supplied to customers in Saudi Arabia, the UAE, India, Singapore, and Africa. Notably, aramcoDURA BS™ 150 is specifically suited for high-viscosity applications, such as those required in the marine industry. Group II base oils are produced at Luberef’s Yanbu facility under the aramcoPRIMA™ brand, which includes four grades: aramcoPRIMA™ 70, aramcoPRIMA™ 110, aramcoPRIMA™ 230, and aramcoPRIMA™ 500. These high-performance base oils are marketed primarily in Saudi Arabia, the UAE, India, and Africa, serving applications that demand enhanced thermal stability, oxidation resistance, and overall consistency. Base Oil Production Product % Change (YoY) 2025 (MT) 2024 (MT) Group I -10% 400,185 446,327 Group II -23% 643,965 833,659 1 Not currently produced by Luberef, supplied through the Alliance. Luberef Annual Report 2025 / Business Overview 5150 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Annual Production Capacity - Yanbu, MT Production Facilities Luberef operates two base oil production facilities – Yanbu and Jeddah – strategically located on the Kingdom’s west coast for efficient access to domestic and international markets. Production Facilities – Overview Capacity (MT/year)1 Production 2025 (MT) Production 2024 (MT) Facility Base Oil Byproducts2 Base Oil Byproducts2 Base Oil Byproducts2 Yanbu 1,180,000 1,780,000 798,324 1,398,173 1,023,085 1,795,532 Jeddah 275,000 1,050,000 245,826 951,988 256,900 950,267 Total 1,455,000 2,830,000 1,044,151 2,350,161 1,279,985 2,745,799 1 Based on current operating products slate. 2 By-product volumes include white products. Yanbu Facility Luberef’s primary production site, the Yanbu facility was commissioned in 1997 and originally designed to produce high-quality Group I base oils. It had an initial production capacity of approximately 300,000 metric tons per year. Until November 2017, the site produced aramcoDURA™ 150, aramcoDURA™ 500, and aramcoDURA BS™ 150. Currently Yanbu has a core focus on Group II base oils, alongside selected Group I grades, including aramcoDURA BS™ 150 and aramcoDURA™ 150. The facility also produces ultra-low sulfur diesel (ULSD), naphtha, drilling fluids, marine heavy fuel oil (MHFO), asphalt, bright stock extract, and sulfur among its byproducts. Yanbu Growth I Expansion A major milestone was achieved with the completion of the Yanbu Growth I Expansion at the end of 2017, which enabled the introduction of Group II base oil production. Following this expansion, Yanbu began producing aramcoPRIMA™ 70, aramcoPRIMA™ 110, aramcoPRIMA™ 230, and aramcoPRIMA™ 500, alongside aramcoDURA™ BS 150, as principal products. The expansion also preserved the facility’s ability to produce a broad slate of byproducts. This increased Luberef’s total Base Oils production capacity (across both facilities) to approximately 1.255 million MT per year by the end of 2017. In 2021, the Yanbu facility’s production capacity increased to approximately 1.07 million MT following capacity enhancements in certain units through transformation initiatives. As a result, Luberef’s total Base Oils production capacity across both the Yanbu and Jeddah facilities reached approximately 1.345 million MT per year. 1,180,000 1,180,000 710,000 300,000 1997 2017 2023 2025 In 2023, further debottlenecking resulted in an additional 110,000 MT increase in Group II capacity, bringing Luberef’s total base oils production capacity to 1.455 million MT per year. Since 2025, Yanbu facility maintained an annual production capacity of 1.180 million MT. By-product Production In addition to base oils, Luberef’s operations generate a range of essential byproducts that support multiple industrial applications. • By-products: Asphalt, marine heavy fuel oil (MHFO), slack wax, bright stock extract, and sulfur. • White products: Ultra-low sulfur diesel (ULSD), naphtha, and drilling fluids. Product % Change (YoY) 2025 (MT) 2024 (MT) Byproducts -14% 2,014,261 2,334,103 White Products -18% 335,900 411,694 Group III Base Oils and Alliance Trade Luberef supplies Group III base oils through the Aramco Base Oil Alliance, sourcing these products from S-Oil and distributing them to regional customers. Luberef’s marketing focus covers the Middle East (including Pakistan) and Africa, supported by distributor networks in South Africa and Tanzania. Within the Alliance, Motiva serves the Americas, while S-Oil covers Europe and Asia, excluding the Middle East and Pakistan. In addition, Alliance members S-Oil and Motiva sell primarily Group III products into Luberef’s markets through coordinated Alliance trade arrangements, ensuring broad product availability and supply flexibility. % Change (YoY) 2025 (MT) 2024 (MT) Group III & Alliance Trade −43% 72,752 126,289 Total Sales Volumes, Thousand MT Regional Sales Volumes, Thousand MT By-product Sales, Thousand MT 783 169 74 308 326 1,295 1,251 582 527 2,489 2,685 63 55 68 162 925 987 2,550 2,742 319 1,102 432 2,276 60 122 783 2,350 987 925 212 243 61 57 ‘24 ‘25 ‘24 ‘25 ‘25 ‘23 ‘23 ‘23 ‘24 Export Local India MENA Africa Other Export Local Base Oil Sales1 As a result of the Growth I Expansion, the Yanbu facility’s total production capacity increased to approximately 1.0 million metric tons per year, including 710,000 metric tons of Group II base oils, significantly strengthening Luberef’s position in higher-value base oil segments. 1 Luberef product only. Luberef Annual Report 2025 / Business Overview 5352 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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70 110 230 500 150 BS 150 By-products By-products ULSD Naphtha Naphtha VDU Distillation Rose PDA Feedstock Asphalt Hydrocracker De-asphalted Oil from Jeddah FEU Extraction ISO De-waxer MLDW De-waxing MHFO Drilling Fluid Group II Train Group II Base Oils Group I Base OilsGroup I Train Sulfur Sulfur 1 4 2 5 3 6 150 500 By-products LVGO Fuel Oil VDU Distillation Conventional PDA Feedstock Asphalt FEU Extraction De-asphalted Oil sent to Yanbu Plant via trucks FEU Extraction MEK De-waxing Slack Wax Group I Train Group I Base Oils Yanbu Facility 1 2 3 4 Jeddah Facility Commissioned in 1977, the Jeddah facility was originally designed to produce aramcoDURA™ 150 and aramcoDURA™ 500 Group I base oils. Over time, the site has undergone multiple debottlenecking initiatives and has strengthened operational synergies with the Yanbu facility. These improvements increased the facility’s annual production capacity from approximately 180,000 metric tons to 275,000 metric tons by 2013, a level that has been maintained to date. Annual Production Capacity - Jeddah, MT Vacuum Distillation Unit (VDU): feedstock heated to a high temperature using fired heater. Hydrocracker: distillates produced by VDU are fed to the Hydrocracking reactor, unit output is known as Waxy or UCO streams. ISO De-waxer: сonverts wax into Base Olls through isomerization process using catalyst. Propane De-asphalting Unit (PDA). Process has two stages: 1) extraction; and 2) solvent recovery. The unit processes VDU bottom to produce Asphalt, in addition to De-asphalted Oil that is fed to FEU to produce BS 150. Furfural Extracting Unit (FEU): uses solvent extraction process to remove undesirable components from DAO and other distillates. Creating a stream known as Raffinate (equivalent to UCO) that is fed to MLDW. Mobile Lube De-waxing unit (MLDW): converts wax into Base Oils through thermal cracking process using catalyst. Vacuum Distillation Unit (VDU): feedstock heated to a high temperature using fired heater. Propane De-asphalting Unit (PDA). Process has two stages: 1) extraction; and 2) solvent recovery. The unit processes VDU bottom to produce Asphalt. In addition to De-asphalted Oil that is fed to Yanbu FEU. Furfural Extracting Unit (FEU): uses solvent extraction process to remove undesirable components from distillates. Creating a stream known as Raffinate. MEK De-waxing Unit: uses mixture of MEK and toluene to crystalize waxes to be removed, producing Group I Base Oils. 1 1 2 2 3 3 4 4 5 6 275,000 275,000 180,000 1997 2013 2025 Luberef Annual Report 2025 / Business Overview 5554 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Operational and Safety Review In 2025, Luberef continued to demonstrate strong operational performance built on safety, reliability, and disciplined execution. The Company maintained a Total Recordable Incident Rate (TRIR) of 0.0 for the sixth consecutive year, reaffirming its position as one of the safest base oil producers globally. Strengthening Health, Safety, and Emergency Preparedness Luberef achieved several milestones in occupational health and safety, underscoring its unwavering commitment to protecting people and assets. In 2025, the Company earned ISO 45001 certification for its Occupational Health and Safety Management System, reflecting adherence to international best practices in risk management and workplace protection. The Industrial Security and Safety (ISS) Department also received multiple recognitions, including Pro Board International Accreditation for ten firefighters certified to NFPA standards, two President’s Awards from neighboring facilities for exemplary incident response, and a perfect score of 30/30 in a major emergency drill conducted by YAMA Group – affirming world-class readiness and responsiveness. Sustained reliability across both refineries, coupled with structured maintenance programs and targeted process improvements, supported operational continuity during a year that included major planned turnaround activities. Luberef Annual Report 2025 / Operational and Safety Review 5756 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Operational Excellence and Reliability Luberef’s strong operational discipline was further demonstrated through the successful completion of a major turnaround, executed safely and on schedule. The work enhanced equipment reliability and prepared both sites for the next phase of capacity expansion, including Group III readiness at Yanbu. Continuous monitoring, digital integration, and predictive maintenance practices further supported mechanical availability above 99%, contributing to Luberef’s industry-leading efficiency and cost competitiveness. Major Turnaround Execution In 2025, Luberef successfully completed the largest planned turnaround in its history, marking a major operational milestone. Conducted safely, the turnaround enhanced asset reliability, efficiency, and readiness for the upcoming Growth II commissioning phase. The scope included comprehensive maintenance, inspection, and equipment upgrades across critical process units, with detailed planning ensuring minimal disruption to ongoing operations. The project mobilized cross-functional teams from both refineries, contractors, and technical partners, supported by robust safety oversight and daily coordination protocols. Completion of the turnaround improved mechanical integrity and extend the life cycle of key assets. The success of this effort reflects the strong technical expertise, collaboration, and commitment of Luberef’s people, whose skills continue to drive operational excellence across the Company. Building Knowledge and Capability Metric 2025 2024 2023 Total Recordable Incident Rate (TRIR) 0.0 0.0 0.0 Hours without Lost-Time Injury 43,307,934 38,067,338 35,445,813 Participants trained in HSE & Emergency Response 976 720 202 Total HSE & Emergency Training Hours 65,105 57,736 43,710 Training initiatives included: • Four major Health and Safety Campaigns on heat stress, ergonomics, wellness, and safety culture. • A new Safety E-Learning Program delivering structured modules on high-risk activities and behavioral safety. • Specialized Technical Safety Sessions led by internal experts and industry professionals, addressing topics such as chemical handling, PPE compliance, and AI in safety monitoring. • Comprehensive safety orientations for employees and contractors to ensure consistent awareness of site-specific hazards and protocols. In 2025 976 participants joined safety programs totaling HSE & emergency training hours 65,105 covering technical, behavioral, and emergency-preparedness topics Luberef continued to invest in health, safety, and emergency-response training to enhance workforce competence and readiness. Embedding a Proactive Safety Culture During the year, Luberef advanced its “Safety as a Second Nature” campaign, embedding a six-pillar safety framework that emphasizes leadership, accountability, continuous learning, and open communication. This initiative strengthened hazard awareness, improved reporting of near misses, and cultivated shared responsibility at all organizational levels. A structured Unsafe Condition Management workflow was introduced, defining ownership, verification, and closure protocols for safety observations. The program achieved a closure rate exceeding 95% across both refineries, eliminating all pending unsafe conditions and establishing a sustainable, transparent mechanism for future cases. Luberef Annual Report 2025 / Operational and Safety Review 5958 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Female employment increased by 19% since 2024 Total training hours 59,696 Total number of direct employees 632 Luberef’s Human Resources strategy aims to build a resilient, high-performing organization that drives business growth while advancing national workforce goals. The Company continues to enhance efficiency, improve the employee experience, and develop Saudi talent at all levels, reinforcing its commitment to capability building and long-term success. Digital transformation has been central to this progress. The rollout of SAP SuccessFactors and managed services simplified workflows, 2025 2024 2023 Full-time employees 632 629 601 Male full-time employees 589 593 578 Female full-time employees 43 36 23 improved data access, and strengthened decision-making. By streamlining HR processes and enhancing service delivery, Luberef has created a more agile and responsive HR function that supports both business and employee needs effectively. Workforce diversity also continued to advance, with a steady increase in female representation across functions, underscoring Luberef’s commitment to inclusivity and equal opportunity in alignment with national workforce goals. Human Resources and Organizational Development Our People Luberef’s success is built on the talent, commitment, and expertise of its people. Their contributions drive innovation, operational excellence, and our growth as a trusted leader in the industry. Luberef Annual Report 2025 / Our People 6160 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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University graduates enrolled in Tamheer on job-training programs 14 Employee Engagement and Future Initiatives During 2025, Luberef delivered a range of employee engagement initiatives, including annual recognition events, health and wellness campaigns, career fairs, and the launch of the Industrial E-Learning Library within SAP SuccessFactors. Looking ahead, Luberef will expand leadership development and personalized learning programs while strengthening well-being and inclusion initiatives. These efforts will ensure the Company remains a sustainable, people-focused organization aligned with long-term growth. Compensation, Benefits, and Employee Well-Being Luberef offers a comprehensive and competitive benefits package designed to support employee well-being, financial security, and long-term engagement. Benefits include healthcare insurance for employees and eligible dependents and parents, life insurance coverage for retirees and their spouses, end-of-service benefits in line with Saudi Labor Law, wellness programs, career development opportunities, and professional training. Additional retention-focused benefits include the Thrift Plan, which encourages long-term savings, and a 13th salary, awarded annually after 12 months of service. Approximately 100% of full-time employees receive core benefits. Meanwhile, ongoing collaboration with Saudi Aramco ensures alignment of compensation and benefits with joint venture standards, supporting competitiveness, transparency, and employee satisfaction. Saudization Luberef remains fully committed to supporting Saudization objectives and Vision 2030, with a clear focus on attracting, developing, and retaining Saudi nationals. Recruitment efforts prioritize Saudi candidates for both entry-level and leadership roles and are supported by partnerships with local universities, technical institutes, and training centers to build a sustainable talent pipeline. Structured onboarding, rotational assignments, on-the-job training, and succession planning programs are tailored to support Saudi employees throughout their careers. As a result, Saudi nationals represented approximately 84–86% of the total workforce the last three years, with growing representation across analyst, Support for Youth Development Leadership Development and Succession Planning A key milestone in recent years was the establishment of the Luberef Leadership Center, which supports structured succession planning and leadership readiness. Approximately 50 high-potential In 2025, Luberef continued to expand its training reach and hours, reflecting sustained investment in workforce capability building. Mentorship remained a key element of employee development, particularly within manufacturing functions, where certified subject-matter experts support hands-on learning through the Job Certification Program. Using Job Task Standards (JTS), mentors help ensure that employees develop the practical skills and safety awareness required for consistent, high-quality performance. Students enrolled in Co-ops/Summer Training Programs 29 Saudization 84% Achieving Platinum status as per the Saudi labor laws Learning, Training, and Mentorship Employee development remains a core priority. Luberef’s annual training plan is based on competency mapping and role-specific certification requirements and is delivered through a combination of classroom instruction, e-learning, workshops, external training providers, and on-the-job learning. Key programs include: • Industrial Certification Program for role-specific technical accreditation • Operations E-Learning Platform, providing flexible access to training resources • Engineering Development Program, focused on building deep technical expertise • SAP SuccessFactors Learning Management System, enabling structured training delivery and tracking • Questionmark Assessment Software, supporting standardized assessments and certifications 2025 2024 2023 Total number of employees that received training 236 189 163 Total number of training hours provided to employees 59,696 53,464 43,568 employees participated in rigorous assessment and development programs designed to prepare them for future leadership roles. These efforts strengthen internal capability while ensuring continuity across critical functions. supervisory, and managerial roles. This progress earned Luberef Platinum status under Saudi Labor Laws, reflecting its continued commitment to national workforce development. Luberef Annual Report 2025 / Our People 6362 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Stakeholder Engagement Luberef maintains open and transparent communication with its key stakeholders to ensure that business decisions reflect their expectations and support sustainable value creation. Regular engagement enables the Company to identify risks and opportunities, strengthen relationships, and align its operations with the priorities of shareholders, employees, customers, suppliers, regulators, and the wider community. Key Topics and Discussions Key Topics and Discussions How Often We Engage How Often We Engage How We Engage How We Engage Purpose of Engagement Purpose of Engagement Shareholders Government and Regulators Employees Customers Community Suppliers • Business Strategy and Long- Term Growth • Financial Performance and Dividends • Share Price and Market Outlook • Corporate Governance Practices • Relationship with Saudi Aramco • ESG Performance and Disclosure • Material Developments • Compliance With Laws and Regulations • Health, Safety, and Environmental Performance • Contribution to Vision 2030 • Industrial and Energy Development • Climate Change and Emission Management • Workplace Health, Safety, and Well-being • Diversity, Inclusion, and Equal Opportunity • Compensation, Benefits, and Job Security • Training and Career Growth • Organizational Culture and Feedback • Product Specifications and Certifications • Price Stability and Supply Reliability • Sustainability Attributes of Base Oils • Customer Satisfaction and Technical Support • Long-Term Supply Agreements • Community Welfare and Social Inclusion • Environmental Sustainability and Awareness • Youth Training and Employment • Local Supplier and SME Development • Corporate Donations and Sponsorships • Delivery and Performance Standards • Ethical, Legal, and Financial Compliance • Procurement Process Transparency • Local Content and Supplier Development • Digitalization and Process Efficiency • Corporate Governance Framework • General Assembly • Annual and Sustainability Reports • Disclosures and Earnings Calls • Investor Presentations and Roadshows • Press Releases and Website Updates • Direct communication with Investor Relations Department • Code of Conduct and Regulatory Compliance Framework • Direct Communication with Ministries and Authorities • Regular Submissions and Site Inspections • Policy Consultations and Forums • Collaboration on Environmental and Industrial Standards • Luberef Code of Conduct and HR Policies • Training and Development Programs • Employee Engagement and Feedback Surveys • Grievance Mechanisms • Internal Communications and Town Halls • Safety and Well-being Campaigns • Code of Conduct and Customer Service Channels • Technical Workshops and Industry Conferences • Direct Sales and Marketing Communication • Product Quality Assurance and Feedback Systems • Online and Digital Platforms • Sustainability Report and CSR Programs • Partnerships with NGOs and Charitable Organizations • Educational and Vocational Training Initiatives • Volunteering and Employee Engagement Campaigns • Environmental and Recycling Projects • Carbon Credit and Tree Planting Initiatives • Supplier Code of Conduct • Supplier Audits and Compliance Assessments • Conferences and Capability- Building Workshops • Regular Performance Reviews • Direct Engagement with Procurement and Contracts Teams Annually, quarterly, and ad hoc as required Annually, quarterly, and ad hoc as required Annually, quarterly, and ad hoc as required Regularly and as required Annually, quarterly, and ad hoc as required Regularly and as required Strengthen transparency, build investor confidence, and communicate performance and strategy Maintain compliance, strengthen partnerships, and support national development goals Foster a safe, inclusive, and high- performing workplace built on engagement and development Deliver quality, reliability, and innovation to build lasting business partnerships Contribute to social and economic development while promoting environmental stewardship Strengthen relationships through ethical sourcing, transparency, and mutual performance improvement Luberef Annual Report 2025 / Stakeholder Engagement 6564 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Risk Management Luberef’s approach to risk management is built on foresight, governance, and resilience. The Company proactively identifies, assesses, and mitigates risks across strategic, operational, and financial dimensions, ensuring that decisions balance opportunity with risk exposure. Governance Structure for Risk Oversight Luberef’s governance model ensures that risk oversight is embedded across all organizational levels. Board of Directors Board Audit Committee Management Team Provides strategic risk oversight, defines risk appetite, and ensures that risk management supports the Company’s long-term objectives. Oversees the risk management framework, reviews risk registers, monitors compliance, and ensures effective internal controls and assurance processes. Implements the risk management framework, executes mitigation strategies, and monitors operational risks. Three Lines of Defense Luberef’s Enterprise Risk Management (ERM) framework is structured around the internationally recognized Three Lines of Defense model, ensuring accountability, transparency, and continuous improvement. 1 2 3 First Line Business and Support Units: Responsible for identifying and managing risks within their areas and implementing appropriate controls. Second Line Risk Management Function: Monitors and reports on enterprise-level risks, oversees mitigation plans, and aligns ERM practices with business strategy. Third Line Internal Audit: Provides independent assurance on the effectiveness of controls, governance systems, and the overall risk management process. Luberef Annual Report 2025 / Risk Management 6766 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Cybersecurity and Digital Resilience During 2025, Luberef elevated cybersecurity governance to a new level of maturity. Operating as a strategic governance enabler, the Cybersecurity function ensures that risks across IT and Operational Technology (OT) environments are proactively managed. Key achievements included: • Integrated IT/OT Governance Model: Clearly defined roles, escalation pathways, and decision rights across all business units. • Cyber Risk Register: Implemented a unified, business-aligned risk register to assess and prioritize risks consistently. • Maturity Advancements: Completed structured maturity evaluations with Aramco, identifying capability gaps and targeted improvements across people, process, and technology. • Incident Readiness: Conducted executive- level tabletop exercises and improved coordination with internal and external stakeholders. • Cultural Awareness: Launched Luberef’s first company-wide Cybersecurity Awareness Campaign, achieving 89% engagement, embedding security awareness across all functions. • Strong Results: Recorded zero critical or high-severity cybersecurity incidents during 2025, reflecting effective governance, monitoring, and preventive controls. Process and Risk Management Framework Business Continuity and Operational Resilience Expanding Risk Domains Luberef applies a comprehensive and proactive approach to managing both internal and external risks, ensuring resilience across all aspects of its operations. Its risk management system covers a broad range of risk domains to ensure business continuity and strategic agility. Luberef maintains an Enterprise Risk Management (ERM) Framework aligned with ISO 31000:2018 and COSO ERM 2017 principles, through which the Company continuously enhances its risk management capabilities. The framework supports comprehensive risk identification and mitigation across the enterprise, strengthens integration between ERM and Insurance Management, while also reinforcing financial and operational resilience. Luberef also undertakes periodic third-party ERM maturity assessments to benchmark its practices against industry peers, identify key strengths, and define targeted areas for continuous improvement. The Company also promotes a strong risk-aware culture by empowering employees to take ownership of risk management and adapt to evolving market and operational conditions. Luberef’s risk management framework identifies, evaluates, and mitigates risks across all operations. Policies are regularly reviewed to ensure alignment with market dynamics and business objectives. 1 2 Define Scope Establish the scope and context of risk assessment in alignment with the Board’s strategic direction. Assess and Monitor Apply transparent, consistent methodologies to assess and monitor risks objectively. Report and Review Report risks, guide teams, and review processes to ensure effectiveness and accountability. Continuous Improvement Maintain ongoing discussions on emerging risks and continuously enhance risk management systems. Identify Risks Identify and assess risks using internal and external frameworks with input from leadership. Independent Assurance Engage external assurance providers to evaluate the effectiveness of internal controls when required. Track Trends Monitor market and macroeconomic trends to adjust frameworks and strengthen resilience. 7 65 4 3 Luberef’s Business Continuity Framework ensures the uninterrupted continuation of critical operations during potential disruptions. It focuses on: • Identifying critical processes and assessing potential impacts. • Developing and testing recovery and contingency plans. • Aligning continuity plans with ERM and cybersecurity systems to manage both digital and physical disruptions. • Conducting scenario-based simulations and improvement exercises. Luberef Annual Report 2025 / Risk Management 6968 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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ESG Review ESG at Luberef 72 ESG Highlights 74 7170 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Consistency with business strategy Acknowledgement of Company’s baseline Alignment with external stakeholders ESG at Luberef Luberef’s ESG approach is built on the belief that sustainability and performance go hand in hand. The Company integrates environmental, social, and governance principles into every aspect of its operations to enhance efficiency, reduce impact, and create long-term value for employees, partners, and communities. Sustainable Management Systems Governance and Oversight ESG Vision Luberef is committed to positively contributing to society and creating value for our shareholders with ESG as a core element 3 Key Pillars Luberef’s ESG governance framework ensures sustainability is embedded in strategic and operational decisions, with clear accountability from the Board to management and dedicated functions driving execution across the organization. ESG governance at Luberef follows a multi-tiered structure: Focus on regulatory compliance and economic value creation BAC & RNC Committees Recommend ESG goals for the BOD, allocate resources, and monitor strategic progress. Management-level ESG Steering Committee translate these goals into actionable strategies and oversee roadmap execution. ESG Hybrid Function coordinates daily implementation, project management, and internal communication, ensuring that sustainability remains embedded across Luberef. Cultivating a transparent and inclusive ESG culture Developing and implementing a clear roadmap for sustainable growth These accreditations provide a structured framework for managing environmental impacts, energy performance. product quality and workplace safety across Luberef’s operations. 14001:2015 50001:2018 45001:2018 9001:2015 / ESG at Luberef 7372 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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ESG Highlights In 2025, Luberef continued to advance its ESG agenda through targeted social, environmental, and community initiatives that strengthened inclusion, enhanced well-being, and supported sustainable development in line with Saudi Vision 2030. Number of CSR project & Initiatives 20+ Total Employee volunteering hours 400+ Number of people impacted by CSR activities 20,078 Number of Agreements signed 4 1,145,114 GHG (Tons CO2e) Empowering Inclusion and Equal Opportunity Luberef strengthened its commitment to workforce inclusion by signing a collaboration agreement with the Qaderoon Association to support people with disabilities. Supporting Education and Youth Development As part of its annual Back to School initiative, Luberef has supported students from low-income families by providing school supplies at the beginning of the academic year. Health and Community Well-being During Breast Cancer Awareness Month, Luberef partnered with the Zahra Association and donated to support the medical treatment of 11 breast cancer patients. Environmental Stewardship and Public Spaces The Company developed Luberef Park at King Faisal Naval Base, fully landscaped with greenery and equipped with recreational facilities. Advancing Circular Economy Practices In partnership with SIRC, Luberef installed a Reverse Vending Machine, a smart recycling solution that collects empty plastic bottles and aluminium cans from the public in exchange for rewards. Strengthening Cybersecurity During 2025, Luberef achieved zero critical or high-severity cyber incidents. Community Support and Food Security Luberef expanded its community outreach efforts during Ramadan: • Sponsored 200 food baskets as part of Aramco’s Blue Box initiative, in collaboration with the Saudi Food Bank, supporting families in need in Jeddah. • Distributed 300 Ramadan food baskets containing essential items to families across villages in Yanbu. / ESG Highlights 7574 Luberef Annual Report 2025 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Committed to Upholding the Highest Standards of Corporate Governance 78 Board of Directors 80 Senior Executives 85 Board Committees 96 Compensation and Other Interests 102 Governance, Risk and Compliance 104 Dividend Policy 107 Corporate Governance Report Luberef Annual Report 2025 7776 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Committed to Upholding the Highest Standards of Corporate Governance Luberef’s approach to corporate governance is built on integrity, transparency, and accountability, ensuring the company operates in the best interests of all stakeholders. The Company’s governance framework is designed to clearly define roles, responsibilities, and decision-making processes, aligning with both regulatory requirements and the specific needs of the business. Oversight Effective oversight is at the core of Luberef’s governance structure. The Board is responsible for setting Luberef’s strategic direction, evaluating risks and internal controls, and ensuring compliance with all applicable laws and regulations. To support these responsibilities, the Board is assisted by two key committees that enhance oversight and governance effectiveness. In 2025, the Board approved the implementation of Saudi Aramco’s Controller’s Group Governance Framework (CGGF) which establishes a leading and consistent standard of governance and controls over financial reporting for major processes across the business. The CGGF is designed in alignment with the globally recognized principles detailed in the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control – Integrated Framework (ICIF), 2013. The Board Audit Committee (BAC) plays a central role in safeguarding the integrity of Luberef’s financial management. It oversees financial reporting processes, internal controls, and risk management frameworks to ensure the accuracy and reliability of disclosures. The BAC also monitors compliance with regulatory requirements and internal policies, reinforcing transparency and accountability across the organization. As part of this mandate, Luberef successfully implemented the Internal Control over Financial Reporting (ICFR) program, further strengthening the robustness, reliability, and integrity of its financial reporting processes. Board Committees Luberef also maintains open and ongoing dialogue with its shareholders, incorporating their feedback to strengthen governance practices and ensure long-term value creation. Through this commitment, Luberef continues to uphold the highest standards of corporate responsibility, ensuring the company remains a trusted, transparent, and well-governed organization. The Remuneration and Nomination Committee (RNC) is responsible for ensuring that Luberef’s leadership and governance structures remain robust and forward-looking. The RNC oversees Board and Board committee composition, succession planning, and senior executive selection and remuneration policies, ensuring alignment with the Company’s strategic objectives and performance culture. Through these efforts, the Committee helps attract, retain, and develop the leadership talent required to sustain long-term growth and value creation. This year, the Board also approved the establishment of a third committee and its governing charter – the Sustainability and HSE Committee. The formation of the committee is now in its final administrative phase, which includes the appointment of its members. Luberef Annual Report 2025 7978 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary/ Committed to Upholding the Highest Standards
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Board of Directors Ibrahim Q. Al Buainain Chairman, Non-Executive Director Mr. Ibrahim Q. Al Buainain was appointed as the Chairman of the Board of Luberef in August, 2022. He presently serves as the Executive Vice President (EVP) of Global Manufacturing at Saudi Aramco. Prior to the role of the EVP, he held the position of Senior Vice President of Sales, Trading & Supply Planning at Saudi Aramco, as well as the President and Chief Executive Officer of Aramco Trading Company for a duration of six years, commencing in 2016. With over three decades of experience in the oil and gas industry, Mr. Al Buainain possesses a robust portfolio of leadership and management expertise (listed below). Education: • MBA in Global Management, Massachusetts Institute of Technology (MIT). • M.S. degree in Innovation and Global Leadership, Massachusetts Institute of Technology (MIT). • B.Sc. degree in Mechanical Engineering at King Fahd University of Petroleum and Minerals, KSA. Other Current Positions: • Chairman of Rabigh Refining & Petrochemical Company (Petro Rabigh), a listed joint stock company operating in petrochemicals. • Board Member of Aramco Trading Company, a limited liability company, operating in oil and gas. • Board Member of Regional Voluntary Carbon Market Company. Selected Previous Positions: • Senior Vice President of Sales, Trading & Supply Planning at Saudi Aramco. • President and Chief Executive Officer at Aramco Trading Company. • Chairman of Aramco Trading Limited (London), a UAE limited liability company operating in oil and gas. • Chairman of Aramco Trading Fujairah FZE, a private corporation with share capital operating in oil and gas. • Chairman of Saudi Petroleum International, Inc., a private stock corporation operating in oil and gas services. • Chairman of Aramco Trading Singapore Pte. Ltd., a limited liability company operating in oil and gas. • Chairman of Aramco Overseas Company, Ltd., a private limited company operating in oil and gas services in The Hague. • Chairman of Aramco Services Company, a private shareholding company operating in oil and gas services in the United States of America. • Chief Executive Officer at Saudi Aramco Energy Venture Company, a limited liability company operating in oil and gas. • Chief Executive Officer at Aramco Trading Company, a limited liability company operating in oil and gas. • Chief Executive Officer at Saudi Aramco Asia Company, Ltd., a limited liability company operating in oil and gas. • Board Member of Petredec, a private limited liability company operating in oil and gas services. • Board Member of Aramco Digital Company, an in-house digital and technology subsidiary of Saudi Aramco. • Board Member of Saudi Aramco Total Refining and Petrochemical Company (SATORP), a petrochemical company operating in oil and gas. • Board Member of S-OIL, a Korean-listed company operating in oil and gas. • Director at Hyundai Oil, a closed joint stock company operating in oil and gas. • Director at National Chemicals Carriers Company of Saudi Arabia, a limited liability company operating in marine transport. • Director at National Shipping Company of Saudi Arabia, a listed joint stock company operating in marine transport. Abdulatif S. Al Shami Vice Chairman, Independent Non-Executive Director Mr. Abdulatif S. Al Shami was appointed as the Vice Chairman of the Board of Luberef in August, 2022, bringing deep industry knowledge and operational expertise to the Company’s leadership. Mr. Al Shami is a veteran energy industry executive with extensive experience in refining, gas processing, and major project execution. Over a career spanning more than four decades at Saudi Aramco, he has held key leadership roles in refinery operations, natural gas processing, and technical support, playing a critical role in managing complex energy infrastructure and large-scale projects. Previously, Mr. Al Shami served as Yanbu Refinery Manager at Saudi Aramco. Prior to this, he also held several leadership roles at Saudi Aramco, managing gas plants, fractionation facilities, and mega-projects across the Kingdom. Education: • M.Sc. degree in Human Resource Development, University of Minnesota. • B.Sc. degree in Electrical Engineering, University of North Carolina. Selected Previous Positions: • Board Member, Saudi Aramco Mobil Refinery Company (SAMREF). • Yanbu Refinery Manager, Saudi Aramco. • Yanbu NGL Fractionation Plant Manager, Saudi Aramco. • Technical Support & Planning Manager, Saudi Aramco. • Hawiyah NGL Plant Manager, Saudi Aramco. • Uthmaniyah Gas Plant Manager, Saudi Aramco. • Berri Gas Plant Manager, Saudi Aramco. • Head of Mega-Project, Karan Gas Field, Saudi Aramco. Khalid D. Al Faddagh Independent Non-Executive Director Dr. Khalid D. Al-Faddagh was appointed as an Independent Member of the Board of Luberef in August, 2022. He is an ex-Saudi Aramco executive with a distinguished 32-year career spanning across multiple disciplines including engineering, field operations and maintenance, project management, quality control, safety compliance, and strategy development. During his time at Saudi Aramco, Dr. Al Faddagh held several senior positions, such as General Auditor (Chief Audit Executive) and Secretary of the Board Audit Committee. He was also the President & CEO of Petron Corporation in the Philippines, overseeing one of the largest refining and marketing operations in Southeast Asia. Apart from Luberef, Dr. Al Faddagh also serves on several boards and committees across multiple sectors including the Public Investment Fund (PIF), Roshn, Banque Saudi Fransi, Vision Invest etc. Education: • Executive Program (PMD) in Leadership & Strategy, Harvard Business School. • PhD, DIC in Mechanical Engineering (Applied Mechanics), Imperial College, London. • M.Sc. in Mechanical Engineering (Applied Mechanics), University of Manchester (UMIST). Other Current Positions: • Board Risk Committee Member, Public Investment Fund (PIF). • Board Audit Committee Member, Roshn (a PIF company). • Board Audit Committee Member, Rua Alharam Almaki. • Board Audit Committee Member, Saudi Eksab (a PIF company). • Board Audit Committee Member, Banque Saudi Fransi. • Board Audit Committee Member, SPIMACO (Pharmaceuticals). • Board Member & Chairman of the Audit & Risk Committee, Vision Invest. • Chairman, Audit & Risk Committee, DataVolt. Selected Previous Positions: • General Auditor (Chief Audit Executive), Saudi Aramco. • President & CEO, Petron Corporation. • Board Member & Chairman of the Audit & Risk Committee, Eastern Health Cluster. • Board Risk Committee Member, GOSI. • Chairman, Risk Committee, BUPA Arabia. • Chairman, Risk & Compliance Committee, ACWA Power. • Board Audit Committee Member, SABIC. • Independent Audit Committee Member, STC (Saudi Telecom). • Chairman, Audit & Risk Committee, Saudi Tabreed. • Vice-Chairman, Audit Oversight Committee, King Fahd University of Petroleum & Minerals (KFUPM). • Shareholders’ Board Representative, Showa Shell, Japan. • Board Member, Petron Corporation, Philippines. Luberef Annual Report 2025 / Board of Directors 8180 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Nabelah M. Al Tunisi Independent Non-Executive Director Eng. Nabelah M. Al Tunisi was appointed as an Independent Non-Executive Director of Luberef in August, 2022. She is an executive leader with over 35 years of experience driving transformation across the energy, industrial, and education sectors. She currently serves on the boards of the Saudi Arabian Mining Company (Ma’aden) and Dar Al-Hekma University, contributing to governance, strategy, and institutional growth. Eng. Nabelah is also the Chief Executive Officer of Hithium and Manat Manufacturing Co., where she leads industrial innovation and strategic expansion in advanced manufacturing. She previously held senior executive roles, including Executive Director for Programs at a leading Riyadh-based organization and was Executive Director of the Energy and Water Sector at NEOM, overseeing large-scale infrastructure and sustainable development initiatives. Earlier in her career, she was Chief Engineer at Saudi Aramco, the first woman to hold this prestigious position, where she led engineering for all above-surface oil and gas facilities globally. During her time at Saudi Aramco, she held leadership roles across central engineering, project management, and supply chain, shaping some of the Kingdom’s most complex energy projects. Education: • M.Sc. degree in Computer Engineering from Oregon State University. • B.Sc. degree in Electrical Engineering from the University of Portland. Other Current Positions: • Chairperson, Remuneration & Nomination Committee, Luberef. • Chairperson, Safety & Sustainability Committee, Saudi Arabian Mining Company (Ma’aden). • Independent Board Member, Saudi Arabian Mining Company (Ma’aden). • Board Member, Dar Al-Hekma University. Selected Previous Positions: • President, ViridiParente MENA. • Executive Director of Programs, Government Project Management Entity. • Managing Director, Energy & Water Sector, NEOM. • Chief Engineer, Saudi Aramco. • General Manager, Northern Area Project Management, Saudi Aramco. • Manager, Materials Planning & System Department, Saudi Aramco. • Director, FEED for SADARA, Saudi Aramco. • Board Member, Saudi Council of Engineers. • Board Member, Saudi Aramco Total Refining and Petrochemical Company (SATORP). • Board Member, Petron Corporation, Philippines. Andrew S. Katz Non-Executive Director Mr. Andrew S. Katz was appointed as a Member of the Board of Luberef in August, 2022, bringing extensive global experience in energy, finance, and strategic development to the Company’s leadership. He is a highly experienced executive with over 30 years of expertise in refining, chemicals, investment banking, and corporate finance. Mr. Katz currently serves as Vice President of Downstream Growth & Development at Saudi Aramco, where he oversees the development and execution of transactions in support of Saudi Aramco’s downstream strategy. Prior to joining Saudi Aramco, Mr. Katz spent nearly a decade as Managing Director and Global Head of Chemicals and Refining at Standard Chartered Bank in Singapore, advising on high-profile transactions. Earlier in his career, he was an investment banker specializing in the chemicals industry in London and New York. Education: • MBA in Finance and Operations Research, New York University Stern School of Business. • B.Sc. degree in Chemical Engineering, Stevens Institute of Technology. Other Current Positions: • Vice President, Downstream Growth & Development, Saudi Aramco. Selected Previous Positions: • Director, Capital Markets and Relations Department, Saudi Aramco. • Director, Transaction Execution Department (SABIC Acquisition), Saudi Aramco. • Director, Transaction and Portfolio Management Department, Saudi Aramco. • Director, Downstream Transaction Services Department, Saudi Aramco. • Director, Chemicals Business Strategy and Development Department, Saudi Aramco. • Board Director, TSRC Corporation (Taiwan-based synthetic rubber manufacturer). • Managing Director & Global Head of Chemicals and Refining, Standard Chartered Bank. Mohammed F. Al Ahmari Non-Executive Director Mr. Mohammed F. Al Ahmari was appointed as a Member of the Board of Luberef in August, 2022 and is currently serving as Senior Financial Advisor at Saudi Aramco. He is a seasoned finance executive with over three decades of experience in corporate finance, governance and controls, financial planning, and strategic investments within the energy sector. Mr. Al Ahmari previously held a number of other roles at Saudi Aramco, including the CFO Aramco Europe, Director of Group Finance and Financial Consulting, Director of Downstream Finance, Manager of Affiliates Support, Manager of Financial Reporting and Tax Compliance, and as the leader of the Finance team SABIC acquisition. Education: • M.A. degree in Accounting, University of Denver, USA. • Post Graduate Advanced Program in Accounting & Finance, Texas A&M University, USA. • B.Sc. degree in Accounting, King Fahd University of Petroleum and Minerals, KSA Other Current Positions: • Board Director, Aramco Ventures, London. Selected Previous Positions: • Board Director, Saudi Aramco Jubail Refinery (SASREF). • Board Director, Aramco Overseas Malaysia. • Board Director, Aramco Overseas Spain. • Board Director, Saudi Aramco Entrepreneurship Investment Ltd (Wa’ed). • Board Director, Saudi Aramco Power Company. • Chief Financial Officer, Aramco Europe BV. • Chief Financial Officer, Aramco UK. • Vice President of Finance, Vela Company. • Director, Downstream Finance, Saudi Aramco. • Director, Group Finance and Financial Consulting, Saudi Aramco. • Manager, Downstream Financial Planning & Performance Management, Saudi Aramco. • Senior Lead, Finance Team, SABIC Acquisition, Saudi Aramco. • Manager, Financial Reporting & Tax Compliance, Saudi Aramco. • Manager, Corporate Planning & Budgeting, Saudi Aramco. • Manager, Cash Management – Group Treasury, Saudi Aramco. • Manager, Projects Compliance, Saudi Aramco. 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Senior Executives Luberef’s senior management team brings together extensive combined experience in the oil and gas industry. Their collective expertise drives the execution of the Company’s strategic priorities, as defined by the Board of Directors, fostering innovation, operational excellence, and long-term value creation for shareholders. Samer A. Al Hokail President & Chief Executive Officer Mr. Samer A. Al Hokail joined Luberef in September 2023, as President & CEO. Before joining Luberef, he was appointed in 2022 to establish and lead a new organization managing more than 12 of Saudi Aramco’s international subsidiary businesses with a combined asset value exceeding $35 billion. Prior to that, Mr. Al Hokail was the President and CEO of the Saudi Petroleum International Inc., based in New York. His responsibilities included managing the development and implementation of Saudi Aramco’s crude sales in North America. Education: • Fellowship and MBA degree in Innovation and Global Leadership from the Massachusetts Institute of Technology (MIT), USA. • B.Sc. degree in Chemical Engineering from Arizona State University, USA. Selected Previous Positions: • President and Chief Executive of Saudi Petroleum International Inc., a New York-based Saudi Aramco subsidiary operating in the oil sector, 2016. • Director of Corporate and Strategic Planning at Saudi Aramco (2015–2016). • Director of Saudi Aramco Hawiyah NGL gas plant (2012- 2013). • Director of Saudi Aramco terminal operations, and then Manager of Jeddah Refinery at Saudi Aramco (2011–2012). Organizational Structure Luberef’s organizational structure, including the Board, its Committees and the functions of the Senior Executives. General Assembly Remuneration and Nomination Committee Board of Directors Board Audit Committee Abdulrahman H. Al Aseeri General Auditor Samer A. Al Hokail President & Chief Executive Officer Saud F. Kamakhi Chief Financial Officer Abdulmalik A. AlTurki Vice President Manufacturing Marwan M. Alfudail Vice President Sales & Marketing Hassan Z. Khan Board Secretary, Legal Counsel & Compliance Manager Jalal A. Saad Vice President Growth Projects Ahmed S. Ghazal Vice President Engineering & Projects Sary A. Attiea Vice President Industrial Security & Administration (Acting) Luberef Annual Report 2025 / Board of Directors 8584 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Abdulmalik A. Al Turki Vice President Manufacturing Mr. Abdulmalik Al Turki brings over 20 years of experience in refining operations and leadership across Saudi Aramco’s facilities. He was appointed as the Vice President of Manufacturing at Luberef in 2025. Prior to joining Luberef, he served as Director of the Aramco Yanbu Refinery, a role he has held since May 2024. Notably, he led the implementation of the region’s first AI-powered Real Time Optimizer (RTO), which contributed to the refinery receiving Saudi Aramco’s Downstream President’s Digital Horizons Award. Mr. Al Turki has held several senior roles across Aramco’s refining network, including positions at the Riyadh, Jeddah, and Jazan refineries, where he advanced operational efficiency and innovation. His experience also includes international assignments with Motiva Enterprises in the United States and leadership roles in corporate integration and strategy. Education: • MBA in Business Administration from King Saud University, KSA. • B.Sc. in Chemical Engineering from King Fahd University of Petroleum & Minerals, KSA. Selected previous positions: • Aramco Yanbu Refinery Director (2024–2025). • Assistant to VP Refining & NGL Fractionation (2020–2022). • SABIC M&A Integration Team Leader (2019–2020). Saud F. Kamakhi Chief Financial Officer Saud Kamakhi is an accomplished finance professional currently serving as the Chief Financial Officer at Saudi Aramco Base Oil Company (Luberef). With a strong background in accounting analysis and financial planning, he brings a strategic approach to managing complex financial operations in the oil and energy industry. His expertise spans budgeting, analytical reporting, and performance optimization, driving organizational efficiency and fiscal sustainability. Known for his leadership and collaborative mindset, Saud excels in building high-performing teams and fostering a culture of transparency and accountability. His proficiency in financial strategy and public communication reflects a balance between technical insight and executive vision, positioning him as a key contributor to Luberef’s continued growth and operational excellence. Education: • M.Sc. degree in Business Administration from Willamette University, USA. • B.Sc. degree in Accounting from King Fahd University of Petroleum and Minerals, KSA. Selected Previous Positions: • Chief Financial Officer at CNTXT (2021–2024). • Finance Controller at AMIRAL (2019–2021). Jalal A. Saad Vice President Growth Projects Jalal Abdul Razak Saad has been VP Growth Projects at Luberef since August 2025. Prior to this, Saad held a number of roles at Luberef, including VP Industrial Security & Administration, Central Engineering Manager, Projects Manager, Industrial Safety and Security Manager, and Yanbu Facility Manager. Education: • B.Sc. degree in Chemical Engineering from King Abdulaziz University, Jeddah, Saudi Arabia. Selected Previous Positions: • VP Industrial Security & Administration, Luberef (2024–2025). • Industrial Safety and Security Manager, Luberef (2021–2023). • Central Engineering Manager, Luberef (2019–2021). • Project Management Department Manager, Luberef (2018–2019). • Program Director for the Expansion Program, Luberef (2018). • Commissioning and Start-Up Manager for the Expansion Program, Luberef (2015–2018). • Operations Interface Manager for the Expansion Program, Luberef (2013–2015). • Operation Representative for the Expansion Program, Luberef (2011–2012). • Acting Refinery Manager for the Yanbu Plant, Luberef (2008–2011). • Operations Manager for the Yanbu Plant, Luberef (2004–2008). • Operations Superintendent at the Yanbu Plant, Luberef (1998–2004). • Acting Process Engineering Supervisor, Luberef (1997–1998). • Commissioning engineer at the Yanbu construction office, Luberef (1995–1997). • Luberef-II Project Engineer Taipei, Taiwan – Luberef (1994–1995). • Senior Process Engineer at the Jeddah plant, Luberef (1993–1994). • Process Engineer at the Jeddah plant, Luberef (1990–1993). Ahmed S. Ghazal Vice President Engineering & Projects Ahmed Ghazal brings over 23 years of practical experience in the Oil & Gas industry, in the fields of Engineering and Manufacturing. He joined Luberef in 2022, where he served as the Asset Integrity and Reliably Manager, becoming the Vice President of Engineering & Projects in January 2024. Mr. Ghazal began his career with Saudi Aramco in 2002 and has since held several key leadership roles, including Engineering and Operations Manager at the Juymah NGL Fractionation Plant and Operations Manager at the Aramco Yanbu Refinery in 2021. Education: • B.Sc. degree in Chemical Engineering from King Fahad University of Petroleum & Minerals. Selected Previous Positions: • Asset Integrity and Reliably Manager, Luberef (2022–2024). • Operation Manager at Yanbu Refinery, Saudi Aramco (2021). • Engineering & Operation Manager at Juymah NGL Fractionation plant, Saudi Aramco (2018–2020). 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Abdulrahman H. Al Aseeri General Auditor Abdulrahman H. Al Aseeri has been serving as the General Auditor at Luberef since April 2021, reporting functionally to the Board Audit Committee and administratively to the President & CEO. With more than 17 years of experience in auditing, accounting, and project management, he has led initiatives that have strengthened governance, modernized audit practices, and enhanced transparency across the organization. Before assuming his current role, he held various leadership positions at Luberef, including Head of Revenue and Accounts Receivables, and Accounting & Finance Representative and Business Administrator for the USD 1.5 billion Yanbu Expansion Project. Prior to joining Luberef in 2010, Abdulrahman worked as an external auditor at Deloitte and PwC. Education: • Certified Fraud Examiner (CFE) by the Association of Certified Fraud Examiners (ACFE). • B.Sc. degree in Accounting, King Fahd University of Petroleum & Minerals (KFUPM). Selected Previous Positions: • Head of Revenue and Accounts Receivables Section, Luberef, 2020–2021. • Assistant Head of the General Accounting Department, Luberef, 2018–2019. • Senior Accountant – Treasury Section, Luberef, 2017–2018. • Accounting and Finance Representative – Luberef Expansion Program, Luberef, 2012–2017. • Business Administrator (Control Division) – Luberef Expansion Program, Luberef, 2012–2016. • Auditor, Deloitte Touche Tohmatsu, 2009–2010 • Associate Auditor, PwC, 2008. Marwan M. Alfudail VP of Sales & Marketing Marwan Alfudail is the Vice President of Sales & Marketing at Luberef, appointed in March 2025. He brings extensive leadership experience across sales, marketing, strategy development, JV management, as well as mergers and acquisitions. He has also held multiple senior positions within Saudi Aramco and its affiliates. Education: • M.B.A degree in Finance from Indiana University, USA. • B.Sc. degree in Computer Information Systems from Indiana University, USA. Other Current Positions: • Member of the National Committee for Base Oils and Lubricants under the Council of Saudi Chambers of Commerce and Industry. Selected Previous Positions: • Director, Amiral Project – Saudi Aramco (2023–2025). • Manager, Business Development, Amiral Project – Saudi Aramco (2018–2023). • Manager, Strategy and Business Development – Motiva Enterprises, Houston (2013–2017). • Manager, Refining and Crude Oil Marketing Strategy – Saudi Aramco (2011–2013). • Manager, North America, Crude Oil Sales & Marketing Department – Saudi Aramco (2010–2011). • Marketing Manager, Strategic Studies Division – Saudi Aramco (2008–2010). • JV Manager – Sinopec Senmai Petroleum Company, Hong Kong (2007–2008). • JV Development & Acquisition Specialist, Hong Kong – Saudi Aramco (2001–2007). Sary A. Attiea VP Industrial Security & Administration (Acting) Sary Attiea began his career in 2004 as a Process Engineer at Luberef. Mr. Attiea is currently serving as the Acting VP of Industrial Safety and Administration, bringing over 21 years of extensive experience and strong leadership within Luberef. Starting his career in technical roles such as Process Control and DCS Engineer, Mr. Attiea advanced through positions including Project Superintendent, Commissioning and Startup Supervisor, and Process & Quality Superintendent. Education: • Pursuing Executive Master of Business Administration (EMBA) at Mohammad Bin Salman College. • B.Sc. in Chemical Engineering – King Abdelaziz University. Selected Previous Positions: • Refinery Director, Luberef (2023). • Operations Manager, Luberef (2022). • Operations Superintendent, Luberef (2021). • Process & Quality Superintendent, Luberef (2019–2020). • Commissioning & Startup Supervisor, Luberef (2017–2018). • Project Superintendent, Luberef (2015–2016). • Project Engineer – Samsung, Korea (2013–2014). • Project Engineer – JACOBS, Netherlands (2011–2012). • Process Control & DCS Engineer, Luberef (2008–2010). • Process Engineer, Luberef (2004–2007). Hassan Z. Khan Board Secretary, Legal Counsel & Compliance Manager Hassan Z. Khan was appointed as the Board Secretary in March, 2025 and has been serving as the Company’s Legal Counsel since December, 2020 and as the Compliance Manager since May, 2024. He is also a Member of the Executive Management Committee. Mr. Khan was the legal lead on the Company’s landmark USD 1.32 billion IPO and is accredited for drafting the Company’s first-ever Code of Conduct and restructuring the corporate governance framework post-conversion to a joint stock company. He has provided legal counsel on contracts exceeding USD 2 billion and managed and resolved various claims and disputes totalling US $800 million. Education: • Postgraduate Diploma in Law (LPC) from the University of Oxford and Oxford Brookes University, United Kingdom. • Bar Admission from Khyber Pakhtunkhwa Bar Council, Pakistan. • Bachelor of Laws (LLB) from the University of Wales, United Kingdom. Current Positions: • Member of Executive Management Committee. • Member of Ethics & Disciplinary Action Committee. • Member of Growth – II Project, Joint Steering Committee. • Member of Credit Committee. • JV Coordination Manager. Selected Previous Positions: • Chief Compliance Officer (A), Luberef (2022–2024). • Legal Advisor, Luberef (2015–2020). • Member, Special Audit Committee, Luberef (2017–2018) • Joint Venture and Regulatory Affairs Officer, Oil and Gas Development Company Ltd. (OGDCL), Pakistan (2012–2015). Luberef Annual Report 2025 / Senior Executives 8988 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Board of Directors The Board has the broadest powers and authorities to manage Luberef and its affairs and carry out all actions and procedures to achieve Luberef’s objectives, subject to any restrictions imposed by the provisions of the Companies Law or the Bylaws. Board Composition and Membership Classification By Nationality 5 1 5 1 33 Non-executive Directors Independent Non-executive Directors Men Women Saudi Arabia Singapore Luberef’s Board is composed of six members who were appointed by the Conversion Assembly on August 14, 2022, for a period of five years. The Board Members have extensive experience in the oil and gas industry including refining, chemicals, energy, engineering, finance, audit, and risk management. With diverse backgrounds and decades of combined experience, the Board is well balanced and able to perform its duties in line with the highest standards of corporate governance. The Board may delegate any of the Board’s powers, within the limits of its authorities, to one or more of the Board Members, managers, officers, employees, or third parties to perform specific actions or duties on behalf of Luberef. It also has the right to revoke such delegations, in whole or in part, and to authorize the delegate the right to delegate specific responsibilities to others. Ibrahim Q. Al Buainain Chairman Non-Executive Director Abdulatif S. Al Shami Vice Chairman Independent Non-Executive Director Khalid D. Al Faddagh Member Independent Non-Executive Director Nabelah M. Al Tunisi Member Independent Non-Executive Director Mohammed F. Al Ahmari Member Non-Executive Director Andrew S. Katz Member Non-Executive Director The following table outlines Board composition and classification in 2025: By GenderBy Independence Luberef Annual Report 2025 / Senior Executives 9190 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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5. Regulatory & Legal: Upholding Compliance and Integrity Operating across jurisdictions requires adherence to diverse legal and regulatory frameworks. The Board’s expertise ensures Luberef complies with global standards, proactively engages with regulators, and mitigates legal risks – preserving the Company’s reputation and stakeholder confidence. 6. Executive Leadership: Guiding Strategic Direction and Performance Strong leadership is essential to achieving Luberef’s strategic ambitions, fostering innovation, and managing organizational complexities. The Board’s executive experience provides effective oversight, ensuring clear direction, operational agility, and organizational alignment to drive sustainable performance. 1. Financial Expertise: Ensuring Sustainable Value Creation In a capital-intensive industry like base oil refining, sound financial oversight is essential to sustaining growth and profitability. The Board’s financial expertise ensures adherence to global best practices, robust internal controls, and disciplined capital allocation, supporting cost efficiency, operational excellence, and long-term shareholder value. 2. Risk Management: Maintaining Resilience in a Volatile Industry The Company operates in an environment exposed to market volatility, geopolitical challenges, and operational risks. Leveraging its strong risk management framework and Board oversight, Luberef effectively identifies, assesses, and mitigates these risks to maintain business continuity and resilience. This approach enables the Company to navigate challenges confidently and sustain performance in a competitive and unpredictable industry. 3. Industry-Specific Expertise: Maintaining a Competitive Edge in Base Oils Base oil production demands deep technical understanding and insight into market dynamics. The Board’s industry expertise enables effective strategic guidance, process optimization, and operational excellence. This knowledge is key to sustaining Luberef’s competitiveness and leadership in the global base oil market. 4. Global Business Acumen: Navigating International Markets Serving customers across Asia, Africa, Europe, and the Middle East, Luberef benefits from the Board’s international experience. This perspective supports the Company in seizing new opportunities, managing global trade risks, and expanding its footprint in growing economies. Board Expertise and Leadership Operating in a rapidly changing industry, Luberef relies on a Board with diverse skills and deep sector knowledge. This collective experience enhances governance, strengthens strategic oversight, and supports the Company’s sustainable growth and performance. 7. Technological Insight: Technology and Innovation Are Vital to Maintaining Competitiveness The Board’s understanding of emerging technologies supports operational efficiency, digital transformation, and continuous improvement – enabling Luberef to meet evolving market and customer demands. 8. Public Company Experience: Strengthening Corporate Governance As a publicly traded company, Luberef must adhere to corporate governance standards and maintain investor confidence. Board Members with public company experience ensure that Luberef upholds governance best practices, manages shareholder relations effectively, and complies with regulatory frameworks. This expertise is critical for maintaining transparency and trust with stakeholders. 9. Sustainability: Driving ESG Commitment Sustainability is a central pillar of Luberef’s long-term strategy. The Board’s ESG expertise guides the Company in advancing environmental stewardship, improving energy efficiency, and aligning with global sustainability standards. This capability ensures Luberef continues to create lasting value while contributing positively to society and the environment. 1 2 3 4 5 6 7 8 9 Financial Expertise Risk Management Industry-Specific Expertise Global Business Acumen Regulatory & Legal Executive Leadership Technological Thinking Public company experience Sustainability The Board’s collective expertise enables Luberef to navigate industry challenges, seize new opportunities, and deliver on its strategic priorities. By combining strong governance with deep operational, financial, and sustainability insights, the Board ensures the Company remains competitive, resilient, and focused on long-term value creation for all stakeholders. Luberef Annual Report 2025 / Senior Executives 9392 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Meeting Results 1. The Company’s Annual Board Report for the financial year ended on 31 December, 2024 was viewed and discussed. 2. The Company’s Financial Statements for the financial year ended on 31 December, 2024 were viewed and discussed. 3. Approved the External Auditor’s Report for the financial year ended on 31 December, 2024 after discussion. 4. Approved the Board’s recommendation to distribute a cash dividend for the second half of 2024 with a total amount of ♥ (518,225,554), representing ♥ (3.08) per share and (30.8%) of the nominal value of the share with dividend disbursement on 30 April, 2025. 5. Approved and authorized the Board to distribute interim (semi-annual or quarterly) dividends for the financial year 2025. 6. Approved paying ♥ 3,600,000 as remuneration for the Board Members for the fiscal year ended on 31 December, 2024. 7. Approved the exoneration of the Board from liability for the financial year ended on 31 December, 2024. 8. Approved the transfer of the Statutory Reserve amount of ♥ 506,250,000 to the Retained Earnings account. General Assemblies Held in 2025 Luberef held one General Assembly meeting in 2025 at the Company’s Administration Office in Jeddah City via modern technology as follows: Extraordinary General Assembly 16th April 2025 Board Attendees Ibrahim Q. Al Buainain Chairman Abdulatif S. Al Shami Vice Chairman Khalid D. Al Faddagh Independent Director and Chairman of the Board Audit Committee Nabelah M. Al Tunisi Independent Director and Chairperson of the Remuneration and Nomination Committee Mohammed F. Al Ahmari Non-Executive Director Andrew S. Katz Non-Executive Director # Name Position Feb 16, 2025 Jun 24, 2025 Jul 31, 2025 Dec 4, 2025 1 Ibrahim Q. Al Buainain Chairman • • • • 2 Abdulatif S. Al Shami Vice Chairman • • • • 3 Khalid D. Al Faddagh Member • • • • 4 Nabelah M. Al Tunisi Member • • • • 5 Mohammed F. Al Ahmari Member • • • • 6 Andrew S. Katz Member • • • • Board Attendance In 2025, four Board meetings were conducted. There were no meeting attendances by proxy during 2025. Below is a record of attendance at these meetings for each Board Member. Board Independence The Board has the authority to interpret and implement the independence provisions stipulated in the Capital Market Authority’s (CMA) applicable rules, including the definitions and vitiating factors thereof, such as specifying any materiality threshold for dealings that would trigger vitiating factors. The Remuneration and Nomination Committee is responsible for verifying, annually, the independence of the independent directors and the absence of conflicts of interest, particularly in the event a member also serves as a board member of another company, where such member is a nominee of Saudi Aramco, upon consultation with Saudi Aramco, in accordance with the Management Agreement. Applying these standards, the Board has determined that Board Members Dr. Khalid D. Al Faddagh, Eng. Nabelah M. Al Tunisi and Mr. Abdulatif S. Al Shami are independent. Board Evaluation The Board, along with its Committees, conducts an annual self-assessment to ensure continuous improvement and governance excellence. This process alternates between an internally led assessment, overseen by the Remuneration and Nomination Committee, and an external assessment conducted by a third-party consultant, which is undertaken at least once during the Board’s term. The responses and feedback from Board Directors and Committee Members are reviewed and tracked over time to identify trends and focus areas for enhancing the performance of the Board and its Committees. In 2024, the Board and its Committees conducted a comprehensive performance assessment. Building on this, the Board in 2025 thoroughly reviewed and discussed the areas for improvement identified in the prior assessment, developing a detailed action plan to address these findings. Additionally, an internal performance assessment was carried out for 2025, demonstrating the Board’s commitment to continuous improvement and maintaining the highest standards of governance. Luberef Annual Report 2025 / Senior Executives 9594 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Audit Committee Annual Report For the Financial Year Ended 31 December 2025 Board Committees Audit Committee Chairman’s Statement For the Year Ended 31 December 2025 2. Committee Meetings, Attendance, and Access During the year, the Audit Committee held six (6) meetings. Attendance by Committee members reflects strong engagement and commitment to the Committee’s fiduciary responsibilities. # Name Position Feb 13, 2025 May 1, 2025 Jun 23, 2025 July 31, 2025 Oct 30, 2025 Dec 3, 2025 1 Khalid D. Al Faddagh1 Chairperson • • • • • • 2 Abdulatif S. Al Shami2 Vice Chairperson • • • • • • 3 Mohammed F. Al Ahmari2 Member • • • • • • Dear Shareholders, I am pleased to present the Audit Committee Report for the year ended December 31, 2025. This report outlines the Committee’s continued efforts to uphold the integrity, transparency, and reliability of the Company’s financial reporting and governance practices, and reflects our commitment to effective oversight, sound judgment, and the highest standards of accountability. Throughout the year, the Committee maintained active oversight of the Company’s financial reporting process, internal control environment, and compliance framework. We worked closely with the Board of Directors and Management to monitor business developments, address emerging risks, and support the continued enhancement of the enterprise risk management framework. The Committee remained actively engaged with Management on financial performance matters, providing constructive challenge and guidance on key financial assumptions, controls, and reporting practices, with a continued focus on safeguarding shareholder interests and supporting sustainable value creation. The Committee continued to oversee the Internal Audit function, ensuring its independence, objectivity, and effectiveness. During 2025, Internal Audit delivered its approved plan in full and further strengthened its risk-based approach, advisory role, and digital capabilities. The Committee also reviewed Internal Audit’s conformance with the new Global Internal Audit Standards and supported actions taken to ensure full alignment. Recognizing the growing importance of cybersecurity and technology risks, the Committee maintained a focused oversight on the Company’s cybersecurity posture and controls. During the year, attention was given to strengthening business continuity capabilities, identity and access management processes, and employee’s awareness programs, to enhance the Company’s overall resilience against potential cybersecurity threats. The Committee also maintained close engagement and open dialogue with the External Auditor, to verify their independence, the audit scope quality, timeliness, and financial reporting transparency. The Committee remains committed to supporting the Board in strengthening the Company’s overall governance, resilience, and long-term value creation for the shareholders. Yours sincerely, Chairman of the Audit Committee Dr. Khalid D. Al Faddagh 1 Chairperson. 2 Member. The President & Chief Executive Officer, the Chief Financial Officer, the General Auditor (who also serves as Committee Secretary), as well as representatives of the External Auditor, are regularly invited to attend the Committee meetings. When required, other members are invited to address specific matters and provide deeper insight on topics relevant to the Committee’s responsibilities. The General Auditor and the External Auditor had direct access to the Chairman of the Audit Committee and met in a private session with the Committee, without the presence of Executive Management when deemed appropriate. These sessions provided additional opportunity for open dialogue, independent discussion, and candid feedback. Following each Audit Committee meeting, the Chairman of the Committee reported in every Board meeting to the Board of Directors key matters discussed, conclusions reached, and recommendations made. 1. Introduction The Audit Committee (“the Committee”) is pleased to present its Annual Report to the Board of Directors for the financial year ended 31 December 2025. This report summarizes the Committee’s activities and how it discharged its responsibilities in accordance with its Charter, delegated authorities, applicable regulations, and recognized corporate governance best practices. During the year, the Committee supported the Board in overseeing financial reporting, internal controls, risk management, cybersecurity, compliance and internal and external audit matters. Luberef Annual Report 2025 / Board Committees 9796 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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8. Compliance, Ethics, and Whistleblowing The Committee oversaw compliance activities and regulatory developments during the year. A key achievement was the approval of several critical policies and procedures, including those relating to insider trading, anti-corruption, privacy and data protection, competition law, international trade, and misconduct reporting and investigation. The Committee also ensured that effective whistleblowing arrangements remain in place. No instances of fraud were reported during the year. 9. Governance and Other Matters During the year, the Committee: • Considered relevant supervisory and regulatory matters. • Received management assurances regarding internal controls, risk management, and cybersecurity. 3. Financial Reporting and Financial Performance Oversight The Committee reviewed and discussed with Management and the External Auditor the Company’s quarterly and annual financial statements prior to submission to the Board. In accordance with the authority delegated by the Board of Directors, the Audit Committee approved the Company’s interim financial statements during the year. The Committee also engaged with Management on the Company’s overall financial performance, challenging their key assumptions, drivers, and identified risks in order to enhance transparency and discipline in financial reporting. 4. External Audit The Committee oversaw all matters related to the External Auditor during the year, including the review of audit scope, audit plan, fees, and key audit matters. Regular engagement with the External Auditor enabled open dialogue and constructive challenge, contributing to the overall audit quality and financial reporting integrity. The Committee is satisfied that the External Auditor maintained independence and objectivity and performed its duties in accordance with applicable regulations and professional standards. 5. Internal Audit The Committee maintained oversight of the Internal Audit function, ensuring its independence, effectiveness, and alignment with the Company’s strategy and risk profile. During 2025, Internal Audit achieved several key milestones, including: • Full execution of the approved Annual Audit Plan with no carry-forward engagements. • Optimization of the audit universe, completion of a comprehensive risk assessment, and development of a five-year rolling audit plan. • Expansion of the advisory role through major assessments. • Completion of a gap assessment against the Global Internal Audit Standards and implementation of actions to support full conformance. • Advancement of audit digital maturity through automation and data analytics. • Achievement of a high implementation rate for audit recommendations. • Client satisfaction levels exceeding established target. The Committee also reviewed and approved the Internal Audit Plan and budget for the year 2026. 6. Risk Management and Internal Controls The Committee reviewed updates on the Company’s enterprise risk management (ERM) framework and internal control environment. During the year: • An ERM maturity assessment was conducted, identifying opportunities for improvement. • A number of recommended enhancements were implemented, contributing to an advancement in ERM maturity. • A Risk Management Steering Committee was established to oversee key strategic risks. • ERM reporting was enhanced through the introduction and integration of a velocity- based risk matrix concept. In addition, the Company adopted the Saudi Aramco Controller’s Group Governance Framework (CGGF), strengthening governance over financial reporting and internal controls and aligning practices with COSO and IFRS principles. 7. Cybersecurity and Information Technology Risk Oversight Cybersecurity and technology risks continued to receive focused attention from the Committee as part of its oversight of internal controls and risk management. Key areas of oversight during 2025 included: • Enhancement of business continuity and resilience capabilities. • Strengthening of employee onboarding and offboarding processes. • Execution of cybersecurity awareness initiatives across the Company’s operations. The Committee is satisfied that cybersecurity risks are appropriately governed and monitored. The Committee maintained open and constructive dialogue with Management, Internal Audit, and the External Auditor throughout the year. 10. Conclusion Based on the work performed and information received during 2025, the Audit Committee is satisfied that the Company’s: • Financial reporting processes are sound and transparent. • Internal control and risk management systems are operating effectively. • Cybersecurity and technology risks are appropriately mitigated and governed. • Internal Audit and External Audit functions remain independent, objective, and effective. • Overall governance maturity continues to strengthen. Luberef Annual Report 2025 / Board Committees 9998 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Remuneration and Nomination Committee The Remuneration and Nomination Committee’s responsibilities include the following: Remuneration • Developing Luberef’s remuneration policy for Board members, Board Committee members and Senior Executives and providing recommendations thereon to the Board for approval by the General Assembly. • Reviewing the remuneration policy periodically to, among other matters, ensure consistency with any changes in relevant legislation and regulations, Luberef’s strategic objectives, and the skills and qualifications required, as well as recommending proposed changes thereto to the Board. • Recommending to the Board the remuneration of the members of the Board, Board Committees and Senior Executives in accordance with the approved remuneration policy. Board of Directors • Developing a policy and criteria for membership of the Board and recommending the policy to the Board for approval by the General Assembly. • Recommending to the Board nominees for Board membership according to the approved Board membership policy. Elevating the names of nominees put forward by Saudi Aramco, immediately, for so long as Saudi Aramco remains a shareholder (directly or through an affiliate), except if the nomination materially violates the approved Board membership policy. • Conducting an annual review of the required skills and expertise for Board membership and updating, if needed, a description of the required capabilities and qualifications. • Examining the size and composition of the Board and recommending, if deemed appropriate, possible changes. • Establishing, if not addressed in existing policies or charters, procedures to address vacancies of the Board and Board Committees and making recommendations to the Board thereon. • Providing recommendations to the Board on performance measures to evaluate the Board’s activities, members, and Board Committees. • Evaluating the Board and Board Committees against the performance measures, reporting to the Board on the results of the evaluation and, where deemed appropriate by the Committee, proposing improvements in line with Luberef’s interest. The Remuneration and Nomination Committee is composed of three members, who were appointed pursuant to a resolution of the Board of Directors on September 7, 2022. Nabelah M. Al Tunisi Chairperson, (Independent, Non-Executive Director) Abdulatif S. Al Shami Member, (Independent, Non-Executive Director) Andrew S. Katz Member, (Non-Independent, Non-Executive Director) # Name Position Feb 12, 2025 Jun 23, 2025 Dec 3, 2025 1 Nabelah M. Al Tunisi1 Independent • • • 2 Abdulatif S. Al Shami2 Independent • • • 3 Andrew S. Katz2 Non-Independent • • • Renumeration and Nomination Committee Meeting Dates and Attendees: 1 Chairperson. 2 Member. Board Members • Determining the amount of time that the Board member shall allocate for performing Board duties. • Verifying, annually, the independence of the independent directors and absence of conflicts of interest in case the member is also a member of the Board of another company; and where such member is a nominee of Saudi Aramco, upon consultation with Saudi Aramco in accordance with the Management Agreement. • Developing job descriptions of executive, non-executive, and independent directors. • Recommending to the Board the re-nomination or dismissal of Board and committee members. Orientation Program for New Board Members • Recommending to the Board an orientation program for new Board members, addressing, among other items, Luberef’s activity, nature of its business, and its financial and legal aspects. Senior Executives • Recommending to the Board appropriate policies and standards for the appointment of senior executives and identifying the required capabilities and skills; and reviewing such policies and standards regularly to ensure their consistency with changes in Luberef’s strategic objectives and the required skills and qualifications to achieve them. • Developing job descriptions for senior executives, reviewing Luberef’s organizational structure, and making recommendations to the Board on possible changes. • Developing succession-planning processes for senior executive positions and making recommendations to the Board thereon. • Conducting an annual review of the skills and expertise required from the Senior Executives. • Oversight of management’s implementation, compliance with and facilitation of the implementation of the Management Agreement with Saudi Aramco. Luberef Annual Report 2025 / Board Committees 101100 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Compensation and Other Interests Remuneration of Directors Luberef has a policy which aims to ensure that its Directors and Executives are paid in a fair, justified and competitive manner. This approach is integral to promoting a conducive environment for business performance and our long-term objectives. This policy is aligned with the interests of Luberef and its shareholders, while attracting, retaining, and motivating talent. Remuneration of Directors (Fixed Remuneration in ☻) Name Fixed Amount Compensation for Board Meeting Compensation for Committee Meeting In Kind benefits Payment for Committee Chairperson Total Independent Directors Khalid D. Al Faddagh 375,000 375,000 187,500 112,500 Nabelah M. Al Tunisi 375,000 375,000 187,500 56,250 Abdulatif S. Al Shami 375,000 375,000 375,000 Subtotal 1,125,000 1,125,000 750,000 - 168,750 Non-Executive Directors Ibrahim Q. Al Buainain 562,500 Andrew S. Katz 562,500 Mohammed F. Al Ahmari 562,500 Subtotal 1,687,500 - - - - Total 2,812,500 1,125,000 750,000 - 168,750 3,731,250 Remuneration of Directors (Variable Remuneration in ☻) Name % of Profit Periodic Remune- ration Short- term Incentive Plans Long- term Incentive Plans Granted Shares (Value) Total End-of- service Award Aggregate Amount Expense Allowance Independent Directors Khalid D. Al-Faddagh - 16,875 Nabelah M. Al Tunisi 16,875 Abdulatif S. Al Shami - Subtotal - - - - - - - - 33,750 Non-Executive Directors Ibrahim Q. Al Buainain Andrew S. Katz Mohammed F. Al Ahmari Subtotal - - - - - - - - - Total - - - - - - - - 33,750 1 The remuneration of the Senior Executives seconded from Saudi Aramco was calculated based on the amount paid by the Company to Saudi Aramco for the secondment arrangement. The Company does not pay any other remuneration for the seconded Senior Executives. 2 Last working date on 28/02/2025. 3 Last working date on 27/03/2025. 4 Last working date on 30/06/2025. Senior Executives Remuneration for the year 2025 The remuneration of Luberef’s Senior Executives for the financial year 2025 compared to 2024 was as follows: 2025 2024 Change Percentage Total remuneration paid to the five highest paid executives including CEO and CFO 1 13,374,275 12,239,260 9% The Company disclosed the Executive Management’s remuneration in accordance with Article 90 of the Corporate Governance Regulations and the common disclosure practice in the Saudi Stock Market. The Company seeks to prevent the risks related to the detailed disclosure, guided by the discretionary authority in Article (63) of the RULES ON THE OFFER OF SECURITIES AND CONTINUING OBLIGATIONS issued by the Capital Market Authority. Shareholding of Directors # Name Number of shares at the beginning of 2025 Number of shares at the end of 2025 Net change 1 Ibrahim Q. Al Buainain – – – 2 Abdulatif S. Al Shami 4,200 5,400 1,200 3 Khalid D. Al Faddagh 15,000 15,000 – 4 Nabelah M. Al Tunisi – – – 5 Mohammed F. Al Ahmari 2,000 2,000 – 6 Andrew S. Katz – – – Shareholding of Senior Executives # Name Number of shares at the beginning of 2025 Number of shares at the end of 2025 Net change 1 Samer A. Al Hokail 800 2,300 1,500 2 Saud F. Kamakhi – – – 3 Ahmed S. Ghazal – – – 4 Marwan M. Alfudail – – – 5 Abdulmalik A. Al Turki – – – 6 Sary A. Attiea 190 432 242 7 Jalal A. Saad 3,000 4,560 1,560 8 Abdulrahman H. Alaseeri 150 – (150) 9 Hassan Z. Khan 150 150 – 10 Waleed M. Murad2 – – – 11 Ahmed M. Al Jiffry 3 208 – (208) 12 Ibrahim Al Faqeeh4 12,150 – (12,150) Compensation and Other Interests Luberef Annual Report 2025 / Compensation and Other Interests 103102 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Governance, Risk and Compliance Corporate Governance Luberef has developed a governance system in accordance with the Corporate Governance Regulations (CGRs) issued by the CMA. The CGRs prescribe the rules and standards for the management of Luberef and ensure that Luberef’s governance standards are in line with best practices. The CGRs also regulate the various relationships between the Board, Senior Executives, shareholders and other stakeholders, by establishing clear rules and procedures to facilitate decision making processes. Their purpose is to protect the rights of shareholders and other stakeholders while promoting the values of credibility, fairness, competitiveness and transparency. Furthermore, the CGRs ensure that the Board acts in the best interest of the shareholders and consistently provides a clear and fair view of Luberef’s financial position and operating results at all times. The provisions of the CGRs are mandatory, except for those provisions referred to as guiding provisions. In addition to the CGRs issued by the CMA, the Board approved the implementation of Saudi Aramco’s Controller’s Group Governance Framework (CGGF) in 2025, which establishes controls over financial reporting for major processes across the business. The CGGF is designed in alignment with the globally recognized principles detailed in the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control – Integrated Framework (ICIF), 2013. Key Corporate Governance Requirements The key corporate governance requirements that Luberef complies with are set out in the Corporate Governance Regulations. These cover the following broad areas: 1. General Rights (Articles 4 to 9). 2. Rights relating to General Assembly Meetings (Articles 10 to 15). 3. The Board of Directors: Formation, responsibilities, competencies, procedures, and training (Articles 16 to 39). 4. Conflicts of Interest (Articles 40 to 46). 5. Company Committees (Articles 47 to 69). 6. Internal controls, external auditor, company reports and policies, disclosures and various other matters (Articles 70 to 95). Corporate Governance Manual and Internal Policies Luberef’s governance system comprises of the following charters and internal policies related to Luberef’s governance: 1. Board Audit Committee Charter, which was approved by a resolution of Luberef’s General Assembly on 28/03/2024. 2. Remuneration and Nomination Committee Charter, which was approved by a resolution of Luberef’s General Assembly on 28/03/2024. 3. Competition Standards, which were approved by a resolution of Luberef’s General Assembly on 28/03/2024. 4. Remuneration Policy, which was approved by a resolution of Luberef’s General Assembly on 28/03/2024. 5. Board Membership Policy, which was approved by a resolution of Luberef’s General Assembly on 05/09/2022. 6. Luberef Code of Conduct, which was approved by a resolution of the Board on 27/02/2024. 7. Disclosure Policy, which was approved by a resolution of the Board on 31/08/2022. 8. Dividend Policy, which was approved by a resolution of the Board on 04/02/2024. 9. Board Procedure, which was approved by a resolution of the Board on 04/02/2024. 10. Conflicts of Interest Policy, which was approved by a resolution of the Board on 31/08/2022. 11. General Assembly Procedures, which were approved by a resolution of the Board on 04/02/2024. 12. Reporting Violations/Whistleblowing Policy, which was approved by a resolution of the Board on 31/08/2022. 13. Stakeholders Management Policy, which was approved by a resolution of the Board 04/02/2024. 14. New Management Guide, approved by a resolution of the Board of Directors on 04/12/2025. 15. New Delegation of Authority (DOA) replacing the existing Limits of Authority (LOA), approved by a resolution of the Board of Directors on 04/12/2025. 16. Sustainability and HSE Committee Charter, approved by a resolution of the Board of Directors on 04/12/2025. 17. Financial Policy, approved by a resolution of the Board of Directors on 04/12/2025. 18. Enterprise Risk Management (ERM) Policy, approved by a resolution of the Board of Directors on 17/09/2022. Risk Assessment and Management The Board regularly assesses potential risks that could impact Luberef’s business model and future performance. Luberef’s risk management framework and risk factors are detailed in the previous section of this Annual Report. Corporate Governance Compliance As at the date of this Annual Report, the Board of Directors declare that Luberef is compliant in all material respects with the mandatory provisions of the Corporate Governance Regulations. Furthermore, the Board of Directors declare that Luberef is compliant with the mandatory provisions of the Corporate Governance Regulations in relation to disclosures, notifications, and filings to the CMA, the Saudi Exchange, and/or the public on a continual basis, including, but not limited to: Article 14(c) which provides that the shareholders shall be allowed through Luberef’s website and the Saudi Exchange’s website to obtain the information related to the items of the General Assembly agenda, particularly the reports of the Board of Directors and the external auditor, the financial statements and the Audit Committee’s report. Article 15(d) in relation to providing the CMA with a copy of the minutes of the General Assembly meeting. Article 15(e) which provides that Luberef shall announce to the public and inform the CMA and the Saudi Exchange of the results of a General Assembly meeting immediately following its conclusion. Article 87 in relation to the items to be covered under the Board report. Article 88 in relation to publishing the Audit Committee’s report on the website of the Saudi Exchange. Related Party Transactions Luberef is deeply integrated within the Saudi Aramco system and as part of its normal course of business, Luberef enters into various related party contracts and transactions. These principally include sales and purchases, and the provision and receipt of services. Such transactions are made on specific terms within the relevant regulatory framework in the Kingdom. There are no transactions in which any of Luberef’s Directors or Senior Executives or an immediate family member thereof has a direct or indirect interest or were not entered into on an arm’s length basis. For compensation-related transactions with Luberef’s Directors and Senior Executives, details are provided separately in this Annual Report. For more information on Luberef’s related party transactions, see the Financial Statements – Note 24. Luberef Annual Report 2025 / Governance, Risk and Compliance 105104 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Declarations based on the Corporate Governance Regulations Board of Directors’ Declarations The Board of Directors confirm the following: a) Accounting records have been properly prepared. b) The internal control system is built on a sound basis and is effectively implemented. c) There are no significant doubts concerning Luberef’s ability to continue carrying out its activity. • No convertible debt instruments, contractual securities, pre-emptive rights, or similar rights were issued or granted by Luberef during the fiscal year 2025. • Luberef did not make any conversion or subscription under any convertible debt instruments, contractual based securities, warrants, or similar rights issued or granted by Luberef during the fiscal year 2025. • No member of the Board of Directors or Senior Executive of Luberef has made any waiver of any remuneration. • No shareholder of Luberef has waived any rights to dividends. • Luberef did not receive notification of any interests belonging to persons other than Board members and Senior Executives regarding shares eligible to vote, or a change in such rights during the year 2025. • The annual financial statements of Luberef have been prepared in accordance with the International Financial Reporting Standards (IFRS) and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (SOCPA), as endorsed in the Kingdom of Saudi Arabia for financial reporting. • Luberef had 489,335 treasury shares as of the end of 2025, with a value of ♦ 48.68 million (see the Financial Statements – Note 15.3). • Luberef presents shareholders’ suggestions and comments about the Company’s performance annually to the Board of Directors. • There are no competing businesses for the Company or any of the branches of activity that it practices and which any member of the Board of Directors is practicing or has been practicing. Luberef applies the provisions of the Corporate Governance Regulations issued by the Capital Market Authority except for the following: Article/Paragraph No. Article/Paragraph Text Reason for Non-Implementation Article 67: Composition of the Risk Management Committee Luberef’s Board shall, by resolution therefrom, form a committee to be named the “Risk Management Committee.” Guiding article 1 Article 68: Competencies of the Risk Management Committee The competencies of the Risk Management Committee shall include the following: (as provided for in Article 68 of the Regulations). Guiding article 1 Article 69: Meetings of the Risk Management Committee The Risk Management Committee shall convene periodically at least once every six months, and as may be necessary. Guiding Article Article 92: Formation of a Corporate Governance Committee If the Board forms a Corporate Governance Committee, it shall assign to it the competences stipulated in Article 92 of these Regulations. Such committee shall oversee any matters relating to the implementation of governance and shall provide the Board with its reports and recommendations at least annually. Guiding Article Penalties During the year ended 2025, the Company did not incur any penalties. 1 The Board Audit Committee is currently carrying out the competencies of the Risk Committee as provided for in its Charter approved by the General Assembly. Dividend Policy Luberef remains committed to creating sustainable shareholder value through a balanced and transparent dividend policy. The Company’s approach is designed to provide regular returns to shareholders while ensuring sufficient flexibility to support growth investments, maintain financial resilience, and fund future expansion. Under the revised policy approved by the Board in February 2024, dividends are based on free cash flow generation, targeting distributions of 60%–80% of annual free cash flows after accounting for capital expenditure and other financial requirements. Interim dividends may be declared by the Board on a quarterly or semi-annual basis, subject to the necessary General Assembly authorization. Dividend decisions consider several factors, including profitability, cash position, capital needs, market conditions, and compliance with regulatory and financing requirements. The Board retains discretion to adjust or suspend distributions where prudent to preserve long-term value and financial stability. Dividends Paid, ♦ Million Description 2025 2024 2023 Free cash flow 1,073 1,606 2,108 Dividends paid 686 1,447 1,683 Luberef Annual Report 2025 / Governance, Risk and Compliance 107106 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Financial Statements Financial Statements Luberef Annual Report 2025 109108 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Revenue recognition Refer to Notes 3 and 4.19 for the accounting estimate, accounting policy relating to revenue recognition and Note 25 for the related disclosures in the accompanying financial statements. The key audit matter How the matter was addressed in our audit During the year ended 31 December 2025, the Company recognised revenue amounting to Saudi Riyals 8,103 million from the sale of base oil, byproducts and freight services to domestic and international customers. Revenue recognition requires the identification of performance obligations under contracts with customers and the determination of the appropriate timing of revenue recognition in accordance with International Financial Reporting Standard 15 Revenue from Contracts with Customers (“IFRS 15”). Revenue from the sale of goods is recognised at a point in time when control of the goods is transferred to customers, while revenue from freight services is recognised over time as the related shipping services are rendered. Revenue recognition also requires an assessment of whether the Company acts as a principal or an agent in certain customer arrangements, which affects whether revenue is recognised on a gross or net basis. Revenue is a key performance indicator for the Company and, due to the significance of revenue, the volume of transactions and the complexity of revenue recognition, there is an inherent risk of material misstatement. Accordingly, revenue recognition was considered a key audit matter. We performed the following audit procedures to address the key audit matter: • Evaluated the appropriateness of accounting policies for revenue recognition against requirements of relevant accounting standards; • Evaluated the design and implementation of the Company’s key controls over revenue recognition; • Examined contractual terms by inspecting relevant documentation and agreements with customers on a sample basis to confirm the appropriateness of identification of performance obligations and whether the Company acted as a principal or an agent; • Tested a sample of sales transactions recorded during the year and inspected the supporting documentation to assess the adequacy of timing of revenue recognition; • Performed cut-off testing on a sample of sales transactions before and after year-end to ensure revenue recognition in the correct accounting period; and • Assessed the adequacy of the relevant disclosures in accordance with the requirements of applicable financial reporting framework included in the financial statements. Other Matter Relating to Comparative Information The financial statements of the Company as at and for the year ended December 31, 2024 were audited by another auditor who expressed an unmodified opinion on those financial statements on February 24, 2025. Other Information Management is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with KPMG Professional Services Company Zahran Business Center Prince Sultan Street P. O. Box 55078 Jeddah 21534 Kingdom of Saudi Arabia Commercial Registration No 4030290792 Headquarters in Riyadh شركة كي بي إم جي للاستشارات المهنية مساهمة مهنية مركز زهران للأعمال شارع الأميرسلطان 55078ص. ب 21534جـده المملكة العربية السعودية 4030290792سجل تجاري رقم المركز الرئيسي في الرياض Independent Auditor’s Report To the Shareholders of Saudi Aramco Base Oil Company – Luberef Opinion We have audited the financial statements of Saudi Aramco Base Oil Company – Luberef (“the Company”), which comprise the statement of financial position as at December 31, 2025, the statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes to the financial statements, comprising material accounting policies and other explanatory information. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2025, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by the Saudi Organization for Chartered and Professional Accountants (SOCPA). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards), that is endorsed in the Kingdom of Saudi Arabia, as applicable to audits of the financial statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with the Code’s requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. © 2026 KPMG Professional Services Company, a professional closed joint stock company registered in the Kingdom of Saudi Arabia with a paid-up capital of SAR110,000,000 and a non-partner member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. 2026 ©شركة كي بي إم جي للاستشارات المهنية مساهمة مهنية، شركة مساهمة مهنية مقفلة مسجلة في المملكة العربية السعودية، ) ريال سعودي مدفوع بالكامل، وهي عضو110,000,000رأس مالها غير شريك في الشبكة العالمية لشركات كي بي إم جي المستقلة والتابعة لـ كي بي إم جي العالمية المحدودة، شركة انجليزية خاصة محدودة بالضمان. جميع الحقوق محفوظة. Luberef Annual Report 2025 /Independent Auditor’s Report 111110 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, then we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit of Saudi Aramco Base Oil Company – Luberef (“the Company”). We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. KPMG Professional Services Company Abdullah Oudah Althagafi License No. 455 Jeddah, February 15, 2026 Corresponding to Shaban 27, 1447H the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS that are endorsed in the Kingdom of Saudi Arabia and other standards and pronouncements issued by SOCPA, the applicable requirements of the Regulations for Companies and Company’s By-laws and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance, Board of Directors, are responsible for overseeing the Company’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. ‘Reasonable assurance’ is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with International Standards on Auditing that are endorsed in the Kingdom of Saudi Arabia, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, Luberef Annual Report 2025 / Independent Auditor’s Report 113112 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Statement of Profit or Loss and Other Comprehensive Income (All amounts in Saudi Riyals thousands, unless otherwise stated) Notes Year ended December 31, 2025 Year ended December 31,2024 Revenue 25 8,103,355 10,035,854 Cost of revenue 26 (6,924,583) (8,700,229) Gross profit 1,178,772 1,335,625 Selling and distribution expenses 27 (36,285) (64,210) General and administrative expenses 28 (252,903) (281,252) Impairment reversal / (loss) on financial assets 11 1,409 (1,500) Other (expenses) / income (561) 11,982 Operating profit 890,432 1,000,645 Finance income 29 46,649 79,942 Finance cost 30 (63,146) (92,174) Profit before Zakat and income tax 873,935 988,413 Zakat and income tax 31 (18,620) (16,385) Profit for the year 855,315 972,028 Other comprehensive income: Items that will not be reclassified to profit or loss: Re-measurement gain on employee benefit obligations 19 15,602 3,631 Total comprehensive income for the year 870,917 975,659 Basic and diluted earnings per share 17 5.08 5.78 The accompanying notes from 1 to 36 form an integral part of these financial statements. Ibrahim Qassim Al-Buainain Samer Abdulaziz M. Al-Hokail Saud Fouad Kamakhi Chairman of the Board President & Chief Executive Officer Chief Financial Officer Statement Of Financial Position (All amounts in Saudi Riyals thousands, unless otherwise stated) Notes As at December 31, 2025 As at December 31, 2024 Assets Non-current assets Property, plant and equipment 5 4,917,823 4,717,668 Right-of-use assets 6 143,535 149,549 Intangible assets 7 26,567 17,212 Loans to employees 9 14,869 18,708 Total non-current assets 5,102,794 4,903,137 Current assets Inventories 10 643,757 670,894 Trade receivables 11 415,563 961,113 Prepayments and other assets 12 71,139 16,628 Short-term deposits 13 385,763 452,304 Cash and cash equivalents 14 987,383 735,171 Total current assets 2,503,605 2,836,110 Total assets 7,606,399 7,739,247 Equity And Liabilities Equity Share capital 15 1,687,500 1,687,500 Statutory reserve 16 - 506,250 Treasury shares 15 (48,682) (49,238) Retained earnings 2,943,628 2,252,947 Total equity 4,582,446 4,397,459 Liabilities Non-current liabilities Borrowings, non-current portion 18 651,304 785,054 Lease liabilities, non-current portion 6 133,831 149,868 Employee benefit obligations 19 349,599 345,266 Provision for decommissioning obligation 21 47,059 46,078 Other non-current liabilities 20 505 4,771 Total non-current liabilities 1,182,298 1,331,037 Current liabilities Trade and other payables 22 1,414,269 1,568,543 Accrued expenses and other liabilities 23 238,806 274,485 Borrowings, current portion 18 133,867 116,455 Lease liabilities, current portion 6 30,061 19,448 Zakat and income tax payable 31 24,652 31,820 Total current liabilities 1,841,655 2,010,751 Total liabilities 3,023,953 3,341,788 Total equity and liabilities 7,606,399 7,739,247 The accompanying notes from 1 to 36 form an integral part of these financial statements. Ibrahim Qassim Al-Buainain Samer Abdulaziz M. Al-Hokail Saud Fouad Kamakhi Chairman of the Board President & Chief Executive Officer Chief Financial Officer Luberef Annual Report 2025 / Statement Of Financial Position 115114 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Statement of cash flows Notes Year ended December 31, 2025 Year ended December 31, 2024 Cash flows from operating activities: Profit before Zakat and income tax 873,935 988,413 Adjustments for: Depreciation of property, plant and equipment 5 228,938 249,446 Depreciation of right-of-use assets 6 22,906 17,549 Amortisation of intangible assets 7 5,786 4,328 Finance income 29 (46,649) (79,942) Non-cash employee expenses 1,631 1,937 Finance cost 30 63,146 92,174 Provision for employee benefits obligations 19 37,501 33,745 Insurance claim compensation 10 - (10,131) Loss on disposals of property and equipment 82 112 Impairment (reversal) / loss on financial assets 11 (1,409) 1,500 Write-off of trade receivables - 1,518 Allowance / (reversal) for inventory obsolescence 10 633 (2,940) Changes in: Inventories 26,504 (44,989) Trade receivables 546,959 89,699 Prepayments and other assets (54,232) 9,125 Trade and other payables (154,274) 394,379 Accrued expenses and other liabilities (34,076) 47,453 Cash generated from operations 1,517,381 1,793,376 Finance income received 43,500 93,019 Employee benefit obligations paid (17,566) (14,027) Zakat and income tax paid 31 (25,788) (63,892) Net cash generated from operating activities 1,517,527 1,808,476 Cash flows from investing activities: Purchase of property, plant and equipment 5 (429,287) (196,595) Proceeds from disposal of property and equipment 112 - Purchase of intangible assets 7 (15,141) (6,221) Investment in short-term deposits (706,168) (880,298) Withdrawals from short-term deposits 773,233 2,049,899 Insurance claim compensation received - 10,131 Collection against employees’ loans 4,903 3,836 Disbursement of employees’ loans (5,661) (4,201) Net cash (used in) / generated from investing activities (378,009) 976,551 Statement Of Changes in Equity (All amounts in Saudi Riyals thousands, unless otherwise stated) Share capital Statutory reserve Treasury shares Retained earnings Total equity Balance as at January 1, 2024 1,687,500 506,250 (49,238) 2,724,281 4,868,793 Profit for the year - - - 972,028 972,028 Other comprehensive income for the year - - - 3,631 3,631 Total comprehensive income for the year - - - 975,659 975,659 Transactions with owners: Dividends (Note 15) - - - (1,446,993) (1,446,993) Balance as at December 31, 2024 1,687,500 506,250 (49,238) 2,252,947 4,397,459 Balance as at January 1, 2025 1,687,500 506,250 (49,238) 2,252,947 4,397,459 Profit for the year - - - 855,315 855,315 Other comprehensive income for the year - - - 15,602 15,602 Total comprehensive income for the year - - - 870,917 870,917 Transfer (Note 16) - (506,250) - 506,250 - Treasury shares issued to employees (Note 15) - - 556 - 556 Transactions with owners: Dividends (Note 15) - - - (686,486) (686,486) Balance as at December 31, 2025 1,687,500 - (48,682) 2,943,628 4,582,446 The accompanying notes from 1 to 36 form an integral part of these financial statements. Ibrahim Qassim Al-Buainain Samer Abdulaziz M. Al-Hokail Saud Fouad Kamakhi Chairman of the Board President & Chief Executive Officer Chief Financial Officer Luberef Annual Report 2025 / Statement Of Changes in Equity 117116 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Notes to the Financial Statements For the year ended December 31, 2025 1. General Information Saudi Aramco Base Oil Company – Luberef (the “Company”) is a Saudi Joint Stock Company registered in the Kingdom of Saudi Arabia. The Company commenced its operations in Jeddah in 1978 and in Yanbu in 1998. The purpose of the Company is to construct, own and operate refineries of base oils and to purchase, sell, transport, market, import and export base oils, additives, base oil blending stocks, byproducts and other related petroleum products. The Company is registered under Commercial Registration (“CR”) number 4030010447 having unified number 7000875133 issued in Jeddah on Ramadan 3, 1396H (corresponding to August 29, 1976). The Company was converted from a limited liability company to a closed joint stock company pursuant to resolution number 1173 dated Muharram 20, 1444H (corresponding to August 18, 2022) issued by the Ministry of Commerce. On December 28, 2022, the Company completed its Initial Public Offering, and its ordinary shares were listed on the Saudi Stock Exchange (“Tadawul”). The financial statements include the financial information of the Company’s head office in Jeddah, its branch in Yanbu and its operations in Hamriyah Free Zone Authority, United Arab Emirates (UAE). The CR number of Yanbu branch is 4700004941. The license certificate number 11857 for operations in Hamriyah was issued with a status of Free Zone Establishment Company (the “Establishment”) by the Government of Sharjah (UAE), on Rabi- ul-Awal 26, 1435H (corresponding to January 27, 2014). The Company has treated the Free Zone Establishment as a branch in these financial statements as it owns 100% paid up capital of the Establishment. Saudi Arabian Oil Company (“Saudi Aramco”) owns 70% shareholding of the Company. The Saudi Arabian Government is the largest shareholder of Saudi Aramco with 81.48% direct shareholding. Saudi Aramco is the immediate parent of the Company. The Company is ultimately controlled by the Government Of Kingdom Of Saudi Arabia. 2. Basis Of Preparation 2.1 Statement of compliance These financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by Saudi Organization for Chartered and Professional Accountants (SOCPA) in the Kingdom of Saudi Arabia as well as other standards and pronouncements issued by SOCPA (collectively referred to as “IFRS as endorsed in KSA”). 2.2 Basis of measurement These financial statements have been prepared on a historical cost basis, except for the following: • The employee benefit obligations which is recognised at the present value of future obligations using the Projected Unit Credit Method; and • Lease liabilities which are recognised at the present value of future lease payments. These financial statements are presented in thousands of Saudi Riyal, which is the Company’s functional and presentation currency. These financial statements have been rounded off to the nearest Saudi Riyal thousands, unless otherwise stated. The accompanying notes from 1 to 36 form an integral part of these financial statements. Ibrahim Qassim Al-Buainain Samer Abdulaziz M. Al-Hokail Saud Fouad Kamakhi Chairman of the Board President & Chief Executive Officer Chief Financial Officer Notes Year ended December 31, 2025 Year ended December 31, 2024 Cash flows from financing activities: Repayment of borrowings (116,304) (1,039,266) Dividends paid 15 (686,486) (1,446,993) Repayment of principal portion of lease liabilities 6 (22,316) (16,954) Finance costs paid on lease liabilities 6 (9,063) (7,155) Finance cost paid (53,137) (85,448) Net cash used in financing activities (887,306) (2,595,816) Net increase in cash and cash equivalents 252,212 189,211 Cash and cash equivalents at the beginning of the year 735,171 545,960 Cash and cash equivalents at the end of the year 14 987,383 735,171 Luberef Annual Report 2025 / Statement of cash flows 119118 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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3. Critical Accounting Estimates and Judgments The preparation of these financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and accompanying disclosures of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future period. The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. Useful life of property, plant and equipment The Company’s management determines the estimated useful life of its property, plant and equipment for calculating depreciation based on the experience with similar assets. The future economic benefits embodied in the assets are consumed principally through use. However, other factors, such as technical or commercial obsolescence and wear and tear, often result in the diminution of the economic benefits embodied in the assets. Management assesses the remaining useful lives in accordance with the current technical conditions of the assets and the estimated period during which the assets are expected to earn benefits for the Company as well as the duration of lease periods. The following primary factors are considered: (a) the expected usage of the assets; (b) the expected physical wear and tear, which depends on operational factors and maintenance plan; and (c) the technical or commercial obsolescence arising from changes in market conditions. The management periodically reviews the estimated useful lives, residual values and the depreciation method to ensure that depreciation is consistent with the expected pattern of economic benefit of the assets. The Company’s assets, classified within property, plant and equipment, are depreciated on a straight -line basis over their economic useful lives. Provision for inventory obsolescence The Company makes a provision for obsolete inventory items. Estimates of net realizable value of inventories are based on the most reliable evidence at the time the estimates are made. These estimates take into consideration fluctuations of price or cost directly related to events occurring subsequent to the balance sheet date to the extent that such events confirm conditions existing at the end of the year. Employee benefit obligations The cost of post-employment defined benefits is the present value of the related obligation, as determined using actuarial valuations. An actuarial valuation involves making various assumptions which may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, withdrawal before normal retirement age, mortality rates, etc. Due to the complexity of the valuation, the underlying assumptions and its long-term nature, a defined benefit obligation is sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. With respect to determining the appropriate discount rate, yield and duration of high-quality bonds obligation, as designated by an internationally acknowledged rating agency, are extrapolated as needed along the yield curve to correspond with the expected term of the defined benefit obligation. See Note 19 for further details. Expected Credit Loss (ECL) measurement on financial assets Measurement of ECL is a significant estimate that involves determination methodology, models and data inputs. The Company uses supportable forward-looking information for measurement of ECL. Details of ECL measurement methodology are disclosed in Note 32.2. The components that have a major impact on credit loss allowance are probability of default (“PD”) and loss given default (“LGD”), as well as models of macro- economic scenarios. The Company regularly reviews and validates the models and inputs of the models to reduce any differences between expected credit loss estimates and actual credit loss experience. 2.3 New standards, interpretations and amendments Standards, interpretations and amendments adopted The Company has applied the following amendments for the first time for the annual reporting period commencing January 1, 2025: Standard / Interpretation Description Effective date IAS 21 Lack of Exchangeability (Amendments to IAS 21) January 1, 2025 The adoption of above amendments does not have any material impact on the financial statements during the year. Standards, interpretations and amendments issued but not yet effective The standards, interpretations and amendments issued, but not yet effective up to the date of issuance of the financial statements are disclosed below. The Company intends to adopt these standards, where applicable, when they become effective: Standard / Interpretation Description Effective from periods beginning on or after the following date IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments – Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures January 1, 2026 Annual Improvements to IFRS Accounting Standards Annual Improvements to IFRS Accounting Standards – Amendments to: • IFRS 1 First-time Adoption of International Financial Reporting Standards; • IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7; • IFRS 9 Financial Instruments; • IFRS 10 Consolidated Financial Statements; and • IAS 7 Statement of Cash flows January 1, 2026 Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity January 1, 2026 IFRS 18 Presentation and Disclosure in Financial Statements January 1, 2027 IFRS 19 Subsidiaries without Public Accountability:Disclosures January 1, 2027 IAS 21 The effects of changes in foreign exchange rates January 1, 2027 IFRS 10 and IAS 28 Sale or contribution of assets between an Investor and its Associate or Joint Venture – Amendments to IFRS 10 and IAS 28 To be determined Management is in the process of assessing the impact, if any, these pronouncements may have in future reporting periods. Luberef Annual Report 2025 / Notes to the Financial Statements 121120 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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When parts of property, plant and equipment are significant in cost in comparison to the total cost of the item and such parts have a useful life different from other parts, the Company recognises such parts as individual assets and depreciates them accordingly. Major spare parts qualify for recognition as property, plant and equipment when the Company expects to use them during more than one year. Transfers are made to relevant operating assets category as and when such items are available for use. Planned turnaround costs are deferred and depreciated over the period until the date of the next planned turnaround. Should an unexpected turnaround occur prior to the previously envisaged date of planned turnaround, the previously undepreciated deferred costs are immediately expensed, and the new turnaround costs are depreciated over the period likely to benefit from such costs. Subsequent measurement The Company adopts the cost model to measure the entire class of property, plant and equipment. After recognition as an asset, an item of property, plant and equipment is carried at its cost less any accumulated depreciation and impairment losses, if any. Subsequent expenditure Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Depreciation Useful lives are determined by management based on the expected usage of the asset, expected physical wear and tear, technical and commercial obsolescence, legal and similar limits on the use of the assets and other similar factors. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Depreciation is calculated on a straight-line basis over the below useful lives and is recognised in the statement of profit or loss and other comprehensive income: Category Useful life-years Manufacturing plants 10 - 50 Building and leasehold improvements 20 - 30 Furniture and fixtures 4 - 10 Other machinery and equipment 2 - 15 Motor vehicles 4 The Company has a policy to depreciate refinery turnaround costs up to five years. De-recognition An item of property, plant and equipment is derecognised when it has been disposed, or no future economic benefits are expected to arise from its use or disposal. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement of profit or loss and other comprehensive income at the time the item is derecognised. Capital work-in-progress (CWIP) Assets in the course of construction or development are capitalised in the CWIP within property, plant and equipment. The asset under construction or development is transferred to the appropriate category in property, plant and equipment, once the asset is in a location and / or condition necessary for it to be capable of operating in the manner intended by management. The cost of an item of CWIP comprises its purchase price, construction / development cost and any other cost directly attributable to the construction or acquisition of an item intended by management. CWIP is measured at cost less any recognised impairment. CWIP is not depreciated. Depreciation only commences when the assets are capable of operating in the manner intended by management, at which point they are transferred to the appropriate asset category. Decommissioning obligation The Company’s operational activities are subject to various laws and regulations. The Company estimates decommissioning obligations based on management’s understanding of the current legal requirements in the Kingdom of Saudi Arabia, terms of the lease agreements and engineering estimates. A provision is made for decommissioning as soon as the obligation arises. Actual costs incurred in future years could differ materially from the amounts provided. Additionally, future changes to laws and regulations and life of assets estimates could affect the carrying amount of this provision. Right-of-use assets and lease liabilities In case of lease contracts where extension options are also available to the Company, judgement is applied in evaluating whether it is reasonably certain to exercise the option. The Company reassesses whether it is reasonably certain to exercise the extension options, upon the occurrence of either a significant event or significant change in circumstances that are within the control of the Company. Revenue recognition The Company has agreements with Saudi Aramco to purchase feedstock for the Company’s Jeddah and Yanbu refineries and to supply certain byproducts back to Saudi Aramco after the feedstock has been processed and base oil extracted for sale to its other customers (see Note 25). The Company accounts for these transactions separately as purchases of feedstock from, and sales of byproducts to, Saudi Aramco, instead of provision of processing services. This is on the basis of the Company’s ability to control, obtaining substantial economic benefits and decision making relating to feedstock used and mix of the products produced which are substantially different from the feedstock purchased. 4. Material accounting policies The Company has consistently applied the following material accounting policies to all periods presented in these financial statements, except if mentioned otherwise. 4.1 Foreign currencies The financial statements include the financial statements of the Company’s branch in Hamriyah Free Zone Authority, United Arab Emirates (UAE). The reporting period of the Company’s branch is same as that of the Company i.e. December 31. The Company’s branch transactions are principally in United Arab Emirates Dirhams and United States Dollars. 4.2 Current vs non-current classification The Company presents assets and liabilities in the statement of financial position based on current / non-current classification. An asset is current when it is: • Expected to be realised or intended to be sold or consumed in normal operating cycle. • Held primarily for the purpose of trading. • Expected to be realised within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. The Company classifies all other assets as non-current. A liability is current when: • It is expected to be settled in normal operating cycle. • It is held primarily for the purpose of trading. • It is due to be settled within twelve months after the reporting period; or • There is no right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current. 4.3 Property, plant and equipment Initial recognition Property, plant and equipment is recognised as an asset when, and only when, it is probable that the future economic benefits that are associated with the property, plant and equipment will flow to the Company, and the cost of the asset can be measured reliably. Property, plant and equipment is recognised and measured initially at cost. Cost includes the fair value of the consideration given to acquire the asset (net of discounts and rebates) and any directly attributable cost, such as site preparation cost, delivery, installation costs, relevant professional fees and the estimated cost of dismantling and removing the asset and restoring the site (to the extent that such cost is recognised as a provision). Luberef Annual Report 2025 / Notes to the Financial Statements 123122 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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4.6 Impairment of non-financial assets Assets that have an indefinite useful life are not subject to depreciation / amortisation and are instead tested annually for impairment. Assets subject to depreciation / amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (cash generating unit). Non-financial assets that have been fully or partially impaired are reviewed for possible reversal of all or part of the impairment loss at the end of each reporting period. The amount of any reversal is restricted to the carrying value of the relevant assets if the original impairment had not occurred (i.e., after taking into normal depreciation had no impairment occurred). The impairment loss is allocated to reduce the carrying amount of the assets of the cash generating unit (group of units) in pro rata on the basis of the carrying amount of each asset in the unit (group of units). These reductions in carrying amounts shall be treated as impairment losses on individual assets and recognised. 4.7 Trade receivables Trade receivables are amounts due from customers for goods sold and services rendered in the ordinary course of business. Trade receivables are recognised initially at the amount of consideration that is unconditional unless arrangements contain significant financing components, when they are recognised at fair value. The Company holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost. Refer Note 32.2 for a description of the Company’s impairment policies. 4.8 Inventories Inventories are stated at the lower of cost and net realizable value. Cost comprises direct materials, direct labor and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The amount of any write-down of inventories to net realisable value and all losses of inventories shall be recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value, shall be recognised as a reduction in the number of inventories recognised as an expense in the period in which the reversal occurs. 4.9 Financial instruments Classification of financial assets The Company classifies its financial assets under the following categories: • Fair value through profit or loss (FVTPL); and • Amortised cost. These classifications are on the basis of business model of the Company for managing the financial assets, and contractual cash flow characteristics. The Company measures financial asset at amortised cost when it is within the business model to hold assets in order to collect contractual cash flows, and contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. For assets measured at fair value, gains and losses will be recorded in statement of profit or loss and other comprehensive income. Initial measurement At initial recognition, financial assets or financial liabilities are measured at their fair value. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statement of profit or loss and other comprehensive income. In the case of financial assets or financial liabilities not at fair value through profit or loss, its fair value plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability is the initial recognition amount. Borrowing costs Borrowing costs directly attributable to the acquisition and or construction of property, plant and equipment that necessarily take a substantial period of time to prepare for their intended use and a proportionate share of general borrowings are capitalised to the cost of those property, plant and equipment. All other borrowing costs are expensed as incurred and recognised in finance costs. 4.4 Leases Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Assets and liabilities arising from a lease are initially measured at their present value. Lease liabilities include the net present value of the following lease payments: • fixed payments (including in-substance fixed payments), less any lease incentives receivable. • amounts expected to be payable by the lessee under residual value guarantees. • the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and • payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Right-of-use assets are measured at cost comprising the following: • the amount of the initial measurement of lease liability. • any lease payments made at or before the commencement date less any lease incentives received. • any initial direct costs; and restoration costs. Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option or not exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). Depreciation of right-of-use assets Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. Subsequent measurement Right-of-use assets The Company adopts the cost model to measure right of use assets. After recognition as an asset, right-of-use assets are carried at the initial recognition amounts less any accumulated depreciation and impairment losses, if any. Lease liabilities The lease liability is measured as follows: (a) Increasing the carrying amount to reflect interest on the lease liability. (b) Reducing the carrying amount to reflect the lease payments made; and (c) Remeasuring the carrying amount to reflect any reassessment or lease modifications, or to reflect revised in-substance fixed lease payments. Where the Company is exposed to potential future increases in variable lease payments based on an index or rate, these are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of liability for each period. 4.5 Intangible assets Intangible assets, consisting of computer software and licenses, are recorded at cost, net of accumulated amortisation and impairment losses, if any. Intangible assets are amortised on a straight- line basis over 3 to 15 years. Luberef Annual Report 2025 / Notes to the Financial Statements 125124 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Impairment of financial assets The Company assesses the expected credit losses associated with its financial assets carried at amortised cost using expected credit losses model. For trade receivables, the Company applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables. See Note 32.2 for further details. Derivative financial instruments Derivative financial instruments, including interest rate swaps are carried at their fair value. All derivative instruments are carried as assets when fair value is positive and as liabilities when fair value is negative. Changes in the fair value of derivative instruments are included in profit or loss for the year. The Company does not apply hedge accounting. 4.10 Short-term deposits Short-term deposits include placements with banks and other short-term highly liquid Islamic investments with original maturities of more than three-month but not more than twelve months from the purchase date. 4.11 Cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents include cash in hand, bank balances and Murabaha deposits as Islamic / shariah complaint instrument with original maturities of three months or less, if any. 4.12 Share capital Ordinary shares are classified as equity. Transaction costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds. Treasury shares are recognised as a deduction from equity at the amount of consideration paid by the Company for their acquisition, including any directly attributable transaction costs incurred. 4.13 Dividends distribution Dividend distribution to Company’s shareholders is recognised as a liability in the Company’s financial statements in the period in which the dividends are approved by Company’s shareholders. 4.14 Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of profit or loss and other comprehensive income over the period of the borrowings using the effective interest method. Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or liabilities assumed, is recognised in statement of profit or loss and other comprehensive income as other income or finance costs. Borrowings are classified as current liabilities unless the Company has a right to defer settlement of the liability for at least 12 months after the reporting period. 4.15 Employee benefits Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. Employees’ thrift plan The Company operates a thrift plan to encourage its employees to make savings in a manner that will warrant an increase in their income and contribute to securing their future according to the established plan. The saving contributions from the participants are deposited in a separate bank account other than the Company’s normal operating bank accounts, which is not restricted and the Company management can access those without any conditions. Post-employment obligation The Company operates post-employment benefit scheme of defined benefit plan driven by the Labor Law of the Kingdom of Saudi Arabia after the retirement of employee. End of service payments are based on employees’ final salaries and allowances and their cumulative years of service. The Company also provides full medical coverage to Saudi employees and their spouses provided they have completed minimum 25 years of service with Classification of financial liabilities The Company designates a financial liability at fair value through profit or loss if doing so eliminates or significantly reduces measurement or recognition inconsistency or where a group of financial liabilities is managed and its performance is evaluated on a fair value basis. All other financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Offsetting financial assets and liabilities Financial assets and liabilities are offset so that the net amount reported in the statement of financial position where the Company currently has a legally enforceable right to offset the recognised amounts, and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Reclassifications Financial assets are reclassified when the Company changes its business model for managing financial assets. For example, when there is a change in management’s intention to hold the asset for a short-term or long-term. Financial liabilities are not reclassified. Subsequent measurement Subsequent measurement of financial assets is as follows: Debt instruments Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in the statement of profit or loss and other comprehensive income and presented in other income / (expenses). Impairment losses are presented as separate line item in the statement of profit or loss and other comprehensive income. FVTPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in the statement of profit or loss and other comprehensive income and presented as fair value gain / (loss) on financial instruments measured at fair value through profit or loss in the statement of profit or loss and other comprehensive income in the period in which it arises. De-recognition The Company derecognises a financial asset when, and only when the contractual rights to the cash flows from financial asset expire, or it transfers substantially all the risks and rewards of ownership of the financial asset. Financial liabilities are derecognised when the obligations specified in the contract are discharged, cancelled or expires. A substantial change in the terms of a debt instrument is considered as an extinguishment of the original liability and the recognition of a new financial liability. The Company accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial liability and the recognition of a new liability. It is assumed that the terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability. If the modification is not substantial, the difference between: (1) the carrying amount of the liability before the modification; and (2) the present value of the cash flows after modification is recognised in profit or loss as the modification gain or loss within other income and expenses. Credit-impaired financial assets A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events: (a) significant financial difficulty of the issuer or the borrower. (b) a breach of contract, such as a default or past due event (see (ii) above); (c) the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider. (d) it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or (e) the disappearance of an active market for that financial asset because of financial difficulties. 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4.19 Revenue recognition Sales of goods Revenue is recognised upon the satisfaction of performance obligations, which occurs when control transfers to the customer under contracts for sale of goods. Control of the products is determined to be transferred to the customer when the title of base oil and / or byproducts passes to the customer, which typically takes place when product is physically transferred into a vessel, pipe or other delivery mechanism. The Company recognises revenue at a point in time when control of the goods is transferred to the customer, generally on delivery of the goods. Freight services Revenue from freight is recognized over a period of time, when the services are rendered. The Company reviews the principal vs agent assessment for different performance obligations agreed as part of contracts with customers. The transaction price is the amount of consideration to which the Company expects to be entitled after deducting value added taxes, excise duties and similar levies. The transaction price is allocated to the performance obligations in the contract based on standalone selling prices of the goods or services promised. 4.20 Expenses Cost of revenue Production costs and direct manufacturing expenses are classified as cost of revenue. This includes raw material, direct labor and other attributable overhead costs and freight costs incurred for freight services. Selling and distribution expenses Selling and marketing expenses are those arising from the Company’s efforts underlying the marketing, selling and distribution functions. General and administrative expenses General and administrative expenses pertain to operation expenses which are not directly related to the production of any goods. These also include allocations of general overheads which are not specifically attributed to cost of revenue or selling and distribution expenses. Allocation of overheads among cost of revenue, selling and distribution expenses, and general and administrative expenses, where required, is made on a consistent basis. 4.21 Finance income Finance income is measured using the effective interest rate, which is the rate that exactly discounts the estimated future cash receipts through the expected life of the financial asset or a shorter period, where appropriate, to the net carrying amount of the financial asset. 4.22 Finance cost Finance cost is recognised for the interest due to the lender of all financial liabilities measured at amortised cost, using the effective interest rate. The effective interest rate is the rate that discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial liability. Additionally, the finance cost also includes time value of money for all the lease liabilities recognised. Finance cost is also recognised due to passage of time whenever a provision or liability has been discounted to its present value. 4.23 Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing: • the net income attributable to the ordinary shareholder of the Company; and • by the weighted average number of ordinary shares outstanding during the reporting period, adjusted for element of bonus ordinary shares issued during the period and excluding treasury shares. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account: • the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares; and • the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. the Company and their age is minimum 55 years or the employee reaches the age of 60 years. The post-employment benefits plans are not funded. Accordingly, valuations of the obligations under those plans are carried out by an independent actuary based on the projected unit credit method. The costs relating to such plans primarily consist of the present value of the benefits attributed on an equal basis to each year of service and the interest on this obligation in respect of employee service in previous years. Current and past service costs related to post- employment benefits are recognised immediately in the statement of the profit or loss and other comprehensive income while unwinding of the liability at discount rates used are recorded as interest cost. Any changes in net liability due to actuarial valuations and changes in assumptions are taken as re-measurement in the other comprehensive income. Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income and transferred to retained earnings in the period in which they occur. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are also recognised immediately in the statement of profit or loss and other comprehensive income as past service costs. 4.16 Provisions Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-zakat and tax rate that reflects current market assessments of the time value of money and the risks specific to liability. The increase in the provision due to the passage of time is recognised as interest expense. The expense relating to a provision is presented in the statement of profit or loss and other comprehensive income, net of reimbursements. Decommissioning cost Provision for decommissioning obligation is recognised when the Company has a liability for restoration work or land rehabilitation. The extent of decommissioning required, and the associated costs are dependent on the requirements of current laws and regulations. Costs included in the provision include all decommissioning obligations expected to occur over the life of the asset. The provision for decommissioning is discounted to its present value and capitalized as part of the asset under property, plant and equipment and then depreciated as an expense over the expected life of that asset. Adjustments to the estimated amount and timing of future decommissioning cash flows are a normal occurrence in light of the significant judgments and estimates involved. Such adjustments are recorded as an increase in liability and a corresponding increase in the related asset. Factors influencing those adjustments include: • developments in technology. • regulatory requirements and environmental management strategies. • changes in the estimated extent and costs of anticipated activities, including the effects of inflation; and • changes in economic sustainability. 4.17 Trade payables Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently measured at amortised cost using effective interest rate. 4.18 Zakat and income tax The Company is subject to Zakat and income tax in accordance with the regulations of the Zakat, Tax and Customs Authority (the “ZATCA”) however subsequent to the listing on Tadawul, the Company is subject to zakat only. Provision for zakat is accrued and charged to the statement of profit or loss and other comprehensive income. Additional amounts payable, if any, at the finalisation of final assessments are accounted for when such amounts are determined. The Company withholds taxes on certain transactions with non-resident parties in the Kingdom of Saudi Arabia as required under Saudi Arabian Income Tax Law. Luberef Annual Report 2025 / Notes to the Financial Statements 129128 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Manufac- turing plants Buildings and lease- hold improve- ments Furniture and fixtures Other machinery and equipment Motor vehicles Capital work-in- progress Total Cost: At January 1, 2024 7,827,245 330,983 27,367 244,584 3,087 359,508 8,792,774 Additions - - - - - 196,595 196,595 Disposals (112) - - - - - (112) Transfers 114,889 2,403 - 2,920 - (120,212) - At December 31, 2024 7,942,022 333,386 27,367 247,504 3,087 435,891 8,989,257 Accumulated depreciation: At January 1, 2024 3,495,216 286,126 27,043 211,307 2,451 - 4,022,143 Charge for the year 238,529 5,610 105 4,973 229 - 249,446 At December 31, 2024 3,733,745 291,736 27,148 216,280 2,680 - 4,271,589 Net book value: December 31, 2024 4,208,277 41,650 219 31,224 407 435,891 4,717,668 (b) Manufacturing plants include refinery turnaround costs. The movement in refinery turnaround costs is as follows: 2025 2024 Cost: Opening and closing balance 186,142 186,142 Accumulated depreciation: Opening balance 135,414 110,122 Charge for the year 14,494 25,292 Closing balance 149,908 135,414 Net book value 36,234 50,728 (c) Additions during the year in capital work-in-progress principally relates to the additions to refineries. Capital work-in-progress as at December 31, 2025, relates to the development and enhancement work for the refineries. (d) Depreciation charge for the year has been allocated as follows: Notes 2025 2024 Cost of revenue 26 228,558 248,971 General and administrative expenses 28 380 475 228,938 249,446 6. Leases The Company leases various land, generators, buildings and other assets including motor vehicles and pipelines. Lease contracts are typically made for fixed periods of 1 to 30 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease contracts do not impose any covenants, and leased assets shall not be used as security for borrowing purposes. At December 31, 2025, the Company did not have any lease contracts classified as right-of-use asset that are variable in nature. Some leases contain extension options exercisable by the Company before the end of the non-cancellable contract period. Where practicable, the Company seeks to include extension options in new leases to provide operational flexibility. The Company assesses at lease commencement whether it is reasonably 4.24 Share-based compensation The cost of an equity-settled award granted to employees is measured by reference to the fair value of the equity instrument on the date the award is granted. This cost is recognised as an employee benefit expense in the statement of profit or loss and other comprehensive income with a corresponding increase in equity. The cost of the equity-settled award is recognised over the vesting period, which is the period over which the employees render the required service for the award. In determining the fair value of an equity-settled award, an appropriate valuation method is applied. Service and non-market performance conditions are not taken into account in determining the fair value of the award, but during the vesting period the likelihood of the conditions being met is assessed as part of the Company’s best estimate of the number of awards that are expected to vest. Any market performance conditions and non-vesting conditions are taken into account in determining the award’s fair value. 4.25 Segmental reporting An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components. All operating segments’ operating results are reviewed regularly by the Company’s Board of Directors and the President & Chief Executive Officer (“CEO”) who make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis and are reported to the Company’s Board of Directors and the President & CEO, being the Chief Operating Decision Maker (“CODM”) of the Company. 5. Property, Plant And Equipment (a) The movement in property, plant and equipment is as follows: Manufac- turing plants Buildings and lease- hold improve- ments Furniture and fixtures Other machinery and equipment Motor vehicles Capital work-in- progress Total Cost: At January 1, 2025 7,942,022 333,386 27,367 247,504 3,087 435,891 8,989,257 Reclassification 1 (73,087) - - - - 73,087 - Additions - - - - - 429,287 429,287 Disposals - - - - (424) - (424) Transfers 22,777 635 - 292 - (23,704) - At December 31, 2025 7,891,712 334,021 27,367 247,796 2,663 914,561 9,418,120 Accumulated depreciation: At January 1, 2025 3,733,745 291,736 27,148 216,280 2,680 - 4,271,589 Charge for the year 219,004 5,587 70 4,094 183 - 228,938 Disposals - - - - (230) - (230) At December 31, 2025 3,952,749 297,323 27,218 220,374 2,633 - 4,500,297 Net book value: December 31, 2025 3,938,963 36,698 149 27,422 30 914,561 4,917,823 1 During the year, the Company has reassessed the presentation of certain plant and equipment pertaining to capital work-in-progress. These items were previously being presented within manufacturing plants and have now been presented under capital work-in-progress. Luberef Annual Report 2025 / Notes to the Financial Statements 131130 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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to exercise extension options given in the land lease agreements. As a consequence of this change in assessment, the lease term for the Yanbu land lease contract has been extended to 99 years. The Company also had a land lease agreement with Saudi Aramco for Jeddah refinery, effective from July 1, 1996 for a term of 25 years. The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee. During the current financial year, there were no revisions of lease terms due to exercising extension and termination options. Amounts recognised in the statement of profit or loss and other comprehensive income: 2025 2024 Depreciation of right-of-use assets (Note 26 and 28) 22,906 17,549 Interest expense (Note 30) 9,062 7,155 Tank rents (short-term leases) (Note 27) 20,429 21,405 Depreciation of right-of-use assets has been allocated as follows: Notes 2025 2024 Cost of revenue 26 20,137 14,780 General and administrative expenses 28 2,769 2,769 22,906 17,549 7. Intangible Assets 2025 2024 Cost: Opening balance 42,564 36,343 Additions 15,141 6,221 Closing balance 57,705 42,564 Accumulated amortisation: Opening balance 25,352 21,024 Charge for the year 5,786 4,328 Closing balance 31,138 25,352 Closing carrying amount 26,567 17,212 Intangible assets comprise software and its development cost. certain to exercise the option. The Company does not provide residual value guarantees in relation to any of its leases. (a) Right-of-use assets Land Generators Buildings Others Total At January 1, 2024 128,300 23,883 11,539 3,376 167,098 Depreciation (4,326) (7,542) (2,769) (2,912) (17,549) At December 31, 2024 123,974 16,341 8,770 464 149,549 Modification1 (8,362) 25,254 - - 16,892 Depreciation (1,846) (17,827) (2,769) (464) (22,906) At December 31, 2025 113,766 23,768 6,001 - 143,535 Depreciation on right-of-use assets is charged to the statement of profit or loss and other comprehensive income using the straight-line method to allocate their costs over their lease term which are as follows: Category Useful life - years Land 30 – 99 Generator 4 Buildings 5 Others 5 – 27 (b) Lease liabilities 2025 2024 Opening balance 169,316 186,270 Modification1 16,892 - Lease payments 2 (31,379) (24,109) Interest on lease liabilities 9,063 7,155 Closing balance 163,892 169,316 2025 2024 Lease liabilities Current 30,061 19,448 Non-current 133,831 149,868 163,892 169,316 As at December 31, 2025, potential future cash outflows of Saudi Riyals 452.87 million (undiscounted) have been included in the lease liability because management considers that it is reasonably certain that the lease will continue to be extended (December 31, 2024: Saudi Riyals 591.34 million) given the nature of the Company’s operations. During the current year, the Company signed an extension to the Yanbu refinery’s land lease agreement with RCJY for 20 years. For the computation of the right-of-use assets and lease liabilities, the lease term applied has been extended to reflect the Company’s reasonable expectations of the period during which the underlying asset will be used. Considering the broader economics of the contract and recent developments, the Company is reasonably certain that parties to the contract will continue 1 The Company has reassessed certain lease contracts based on the recent developments and recognised the modification with the corresponding impact in the right-of-use assets and lease liabilities. 2 Lease payments include a payment made to Royal Commission for Jubail and Yanbu (“RCJY”), a related party, for Yanbu land lease contract amounting to Saudi Riyals 5.8 million during the year ended December 31, 2025 (December 31, 2024 Saudi Riyals 5.8 million). Luberef Annual Report 2025 / Notes to the Financial Statements 133132 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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b) Other loans to employees Such loans are given to eligible Saudi employees of the Company under a scheme approved by the Board of Directors. Under this scheme, the employees are eligible for loans up to 80% of their end-of-service benefits accrued. Such loans, which do not bear any finance charges, are re-payable by the employees over 36 months and are secured against the related employees’ end of service benefits. The movements in other loans to employees are as follows: 2025 2024 Opening balance 2,138 1,544 Loans disbursed during the year 685 2,057 Finance income for the year 317 468 Discounting effect on new loan (365) (590) Deductions during the year (1,840) (1,341) Closing balance 935 2,138 Other loans to employees are recognised as a non-current financial asset at fair value and measured at amortised cost using the EIR method. The difference between the fair value and the actual amount of cash given to the employee is recognised as an expense. The carrying amount of employees’ loans on each reporting date approximates the fair value of this balance. 10. Inventories 2025 2024 Finished goods 198,317 232,398 Production in progress 247,835 260,169 Raw material - feedstock 97,918 85,770 Spare parts and consumables materials 119,141 111,378 663,211 689,715 Less: Allowance for obsolescence spare parts (19,454) (18,821) 643,757 670,894 Movement in provision for obsolescence spare parts is as follows: 2025 2024 Opening balance 18,821 21,761 Additions for the year 633 573 Reversal for the year1 - (3,513) Closing balance 19,454 18,821 8. Employees’ Home Ownership Receivable In the prior years, the Company had a Home Ownership Program that offered eligible Saudi employees’ home ownership opportunities. During 2010, the Company constructed and sold 133 residential houses for outright sale to the employees. Houses were sold to eligible employees, and a receivable was recorded against such sale, which does not bear any finance charges and is expected to be collected over a period of 15 years. Deductions are made monthly from the employees’ salaries up to 25% of their basic salaries. The Company has the legal documents of the property as collateral having fair value higher than the receivable balance to be collected from the employee and shall transfer the legal title of those residential houses to the concerned employees at the time of final settlement of the loan. (a) The movement in employees’ home ownership is as follows: 2025 2024 Opening balance 711 1,950 Deductions from employees’ salary during the year (657) (1,311) Finance income due to unwinding 44 72 Closing balance 98 711 9. Loans To Employees Loans to employees comprise the following: Notes 2025 2024 Home loans to employees 9(a) 19,590 21,334 Other loans to employees 9(b) 935 2,138 Less: current portion 12 (5,656) (4,764) 14,869 18,708 (a) Home loans to employees The movement in home loans to employees’ balance is as follows: 2025 2024 Opening balance 21,334 19,618 Disbursed during the year - 2,400 Finance income for the year 662 855 Discounting effect on loan disbursed - (355) Deductions during the year (2,406) (1,184) Closing balance 19,590 21,334 Home loans are given to eligible Saudi employees of the Company under a scheme approved by the Board of Directors. Under this scheme, loans are provided to eligible employees for the purpose of purchasing or constructing their residential houses. Such loans, which do not bear any finance charges, are re-payable by the employee as per the agreement with the employee and the Company have the title of the property until the employee has settled all dues. The fair value of the related collateral property is higher than the carrying value of the home loan to employees. 1 In 2022, inventory and other assets were damaged due to heavy rain in Jeddah. During the year ended December 31, 2024, the Company successfully secured insurance claims of Saudi Riyals 10.13 million and recognised this within “other income”. Luberef Annual Report 2025 / Notes to the Financial Statements 135134 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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13. Short-Term Deposits The Company deposited Saudi Riyals 383.08 million (December 31, 2024: Saudi Riyals 450.14 million) in Murabaha deposits. The accrued profit from Murabaha deposits amounted to Saudi Riyals 2.68 million (December 31, 2024: Saudi Riyals 2.16 million). These short-term deposits, with maturity periods ranging from 112 days to 170 days, were held with commercial banks and are due to mature by April 7, 2026. The Company placed short-term Murabaha deposits on a recurring basis during the year ended December 31, 2025. The Murabaha deposits are held with banks having sound credit ratings. The fair value at each reporting date is estimated to be the same as their carrying value as they are short-term in nature and profit on Murabaha deposits is based on market prevailing rates. 14. Cash and Cash Equivalents 2025 2024 Cash at banks 420,392 716,344 Murabaha deposits 566,991 18,827 987,383 735,171 Cash at banks and Murabaha deposits are placed with banks having sound credit ratings (refer to Note 32.2). The carrying value at each reporting date is considered to be the same as fair value. Murabaha term deposits are placed with local commercial banks and yield shariah compliant financial income at prevailing market rates with original maturities of three months or less. 15. Share Capital 15.1 Issued and paid-up capital 2025 2024 Ordinary shares of Saudi Riyals 10 each (December 31, 2024: Saudi Riyals 10 each) 1,687,500 1,687,500 Issued and paid-up capital Number of shares 168,750 168,750 15.2 Dividend On February 16, 2025 (corresponding to Shaban 17, 1446H), the Board of Directors of the Company resolved to recommend the General Assembly for distribution of annual dividends for the year ended December 31, 2024 of Saudi Riyals 3.08 per share amounting to Saudi Riyals 518.23 million which were approved by the General Assembly on April 16, 2025 (corresponding to Shawwal 18, 1446H). The payments were made on April 30, 2025. Further, on July 31, 2025 (corresponding to Safar 6, 1447H), the Board of Directors of the Company approved an interim dividend for the six-month period ended June 30, 2025 of Saudi Riyals 1 per share amounting to Saudi Riyals 168.26 million. The payments were made on October 15, 2025. 15.3 Treasury shares On December 28, 2022, the Company acquired 580,000 ordinary shares from Jadwa Industrial Investment Company for cash consideration of Saudi Riyals 57.42 million. In 2023 and 2025, certain treasury shares were awarded to employees as share-based compensation. As at December 31, 2025, the outstanding treasury shares with the Company is 489,335 ordinary shares (December 31, 2024: 494,950 ordinary shares) amounting to Saudi Riyals 48.68 million (December 31, 2024: Saudi Riyals 49.24 million). 11. Trade Receivables Notes 2025 2024 Trade receivables 240,823 398,638 Related parties 24 187,126 576,270 427,949 974,908 Allowance for expected credit losses (12,386) (13,795) 415,563 961,113 Related party balances amounting to Saudi Riyals 335.31 million (December 31, 2024: Saudi Riyals 446.73 million) have been offset against the related party trade payables in the statement of financial position. For details, refer to Note 22. Due to the short-term nature of the trade receivables, their carrying amounts are considered to approximate their fair value and are generally settled within 12 months from the reporting date. Movement in provision for impairment of trade receivables is as follows: 2025 2024 Opening balance 13,795 12,295 (Reversal) / loss for the year (1,409) 1,500 Closing balance 12,386 13,795 Information about the impairment of trade receivables and the Company’s exposure to credit risk, market risk and liquidity risk is disclosed in Note 32.2. 12. Prepayment and Other Assets Notes 2025 2024 Net value added tax (VAT) receivables 55,019 - Advances to suppliers 6,237 5,319 Loans to employees, current portion 9 5,656 4,764 Prepaid insurance 1,310 3,754 Employees’ home ownership receivables, current portion 8 98 711 Others 2,819 2,080 71,139 16,628 Loans to employees, employees’ home ownership receivables and other receivables are generally settled within 12 months from the reporting date. Hence, their carrying amount is considered to be the same as fair value. Luberef Annual Report 2025 / Notes to the Financial Statements 137136 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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As at December 31, 2025, the Company has two Islamic credit facilities from local commercial banks for managing its working capital amounting to Saudi Riyals 345 million (December 31, 2024: Saudi Riyals 415 million). There are no financial covenants applicable to the Company under such facilities with the respective bank. The facilities are unsecured. The maturity of the Islamic credit facilities are within twelve months. Total unused credit facilities available to the Company as at December 31, 2025 is Saudi Riyals 345 million (December 31, 2024: Saudi Riyals 415 million). Fair value of long-term borrowings is approximately equal to their carrying amounts as they are subject to variable interest at market rates. Finance costs recognised as expense on the above borrowings have been disclosed in Note 30. The Company’s main interest rate risk arises from borrowings with variable rates, which expose the Company to cash flow interest rate risk. During the year ended December 31, 2025 and 2024, the Company’s borrowings at variable Murabaha profit rates were mainly denominated in Saudi Riyals and USD. The breakdown of the aggregate maturities of borrowings is as follows: 2025 2024 2025 - 116,455 2026 133,867 133,750 2027 139,565 139,565 2028 162,826 162,826 2029 348,913 348,913 785,171 901,509 19. Employee Benefit Obligations Employee benefit obligations comprise the following: Notes 2025 2024 Employees’ end of service benefits 19 (a) 145,368 138,550 Employees’ post-retirement health care benefit 19 (b) 204,231 206,716 349,599 345,266 Net benefit expense recognised in profit or loss for the year in the statement of profit or loss and other comprehensive income: 2025 2024 Current service cost 16,704 15,974 Interest cost 20,797 17,771 37,501 33,745 Net benefit gain recognised in other comprehensive income in the statement of profit or loss and other comprehensive income: 2025 2024 Actuarial (gain) / loss arising from experience (14,053) 34,010 Actuarial gain arising from changes in financial assumptions (1,549) (37,641) (15,602) (3,631) 16. Statutory Reserve During the year ended December 31, 2025, the Company transferred statutory reserve amounting to Saudi Riyals 506.25 million to retained earnings. This transfer was recommended by the Board of Directors of the Company on February 16, 2025 (corresponding to Shaban 17, 1446H) to the General Assembly which were approved by the General Assembly on April 16, 2025 (corresponding to Shawwal 18, 1446H). 17. Earnings Per Share 2025 2024 Net profit attributable to owners of the Company 855,315 972,028 Weighted average number of shares 1 168,261 168,255 Basic / diluted earnings per share (Saudi Riyals per share) 5.08 5.78 18. Borrowings Long-term borrowings comprise of the following: 2025 2024 Islamic banking facilities (Murabaha) 785,171 901,509 Less: current portion of long-term borrowings (133,867) (116,455) 651,304 785,054 Currency denomination of the borrowings in Saudi Riyals equivalent is as follows: 2025 2024 Saudi Riyals 405,431 465,504 United States Dollars (“USD”) 379,740 436,005 785,171 901,509 On August 19, 2021, the Company entered into an Islamic loan agreement under Murabaha arrangement. The agreement involved a loan syndication of Saudi Riyals 1,687.5 million from five local banks. In addition, USD 150 million (equivalent of Saudi Riyals 562.5 million) from a commercial bank. The principal repayments began from June 30, 2022 and will continue on an agreed semi- annual installment basis till June 30, 2029. These facilities bear finance costs at market rates, which are generally based on Saudi Inter Bank Offered Rate (“SIBOR”) for Saudi Riyals denominated borrowings and on Term Secured Overnight Financing Rate (“Term SOFR”) for USD denominated borrowings. The spread during the year ended December 31, 2025, on these facilities varied between 0.9% and 1.25% (December 31, 2024: 0.75% and 1.25% per annum). Moreover, there is no collateral on the Company’s assets due to these long-term borrowing agreements. The above long-term borrowing agreements contain certain covenants, which among other things, require the Company to maintain annually net debt to equity and certain other financial ratios. As at and during the year ended December 31, 2025, and 2024, the Company was compliant with all the covenants with the lenders. 1 As at December 31, 2025 and 2024 the Company does not have any potential ordinary shares. Luberef Annual Report 2025 / Notes to the Financial Statements 139138 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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The expected maturity analysis of undiscounted employee benefit obligations as at December 31, is as follows: 2025 2024 Less than a year 13,774 9,161 Between 1 – 4 years 41,839 47,765 Between 5 – 10 years 93,531 95,760 b) Employees’ post-retirement health care benefit The Company provides full medical coverage to Saudi employees and their spouses provided they have completed a minimum 25 years of service with the Company, and their age is minimum 55 years, or the employee reaches the age of 60. The employees who joined the Company after February 28, 2021, will not be eligible for this benefit. The following table summarizes the components of the net benefit expense recognised in the statement of profit or loss and other comprehensive income and the amounts recognised in the statement of financial position: Movement in the present value of employees’ post-retirement health care benefit: 2025 2024 Opening balance 206,716 192,569 Included in profit or loss: Current service cost 5,958 5,479 Interest cost 13,026 11,089 18,984 16,568 Included in other comprehensive income: Actuarial (gain) / loss on obligations (18,613) 363 Benefits paid during the year (2,856) (2,784) Closing balance 204,231 206,716 Significant assumptions used in determining the post-employment defined benefit obligation include the following: 2025 2024 Discount rate 6.20% 6.35% Medical rate (pre-retirement) 9% 10% Medical rate (post-retirement) 10% 10% A quantitative sensitivity analysis for significant assumptions on the defined benefit obligation is shown below: Discount rate: 2025 2024 0.5% increase in discount rate (21,244) (21,988) 0.5% decrease in discount rate 24,901 25,843 Medical rate (Pre-Retirement): 2025 2024 0.5% increase in medical rate (Pre-retirement) 6,716 926 0.5% decrease in medical rate (Pre-retirement) (6,184) (925) a) Employees’ end of service benefits The Company has an employee defined benefit plan. The benefits are required by Saudi Labor Law. The benefit is based on the employees’ final salaries and allowances and their cumulative years of service, as stated in the labor laws of Saudi Arabia. The following table summarizes the components of the net benefit expense recognised in the statement of profit or loss and other comprehensive income and amounts recognised in the statement of financial position. Movement in the present value of employees’ end of service benefits: 2025 2024 Opening balance 138,550 136,610 Included in profit or loss: Current service cost 10,746 10,495 Interest cost 7,771 6,682 18,517 17,177 Included in other comprehensive income: Actuarial loss / (gain) on obligations 3,011 (3,994) Benefits paid during the year (14,710) (11,243) Closing balance 145,368 138,550 Significant assumptions used in determining the employee defined benefit obligation include the following: 2025 2024 Discount rate 5.55% 5.80% Future salary increase rate 5% 4.80% - 5% A quantitative sensitivity analysis for significant assumptions on the defined benefit obligation is shown below: Discount rate: 2025 2024 0.5% increase in discount rate (5,977) (5,347) 0.5% decrease in discount rate 6,454 5,806 Future salary growth rate: 2025 2024 0.5% increase in future salary growth rate 6,457 5,832 0.5% decrease in future salary growth rate (6,035) (5,420) The sensitivity analysis is based on a change in one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of defined benefit obligation calculated with projected unit credit method at the end of the reporting period) has been applied when calculating the employee termination. The weighted average duration of the defined benefit obligation as at December 31, 2025 is 8.6 years (December 31, 2024: 8.1 years). Luberef Annual Report 2025 / Notes to the Financial Statements 141140 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Movement in provision for decommissioning is as follows: 2025 2024 Opening balance 46,078 45,179 Unwinding of discount (Note 30) 981 899 Closing balance 47,059 46,078 22. Trade And Other Payables Notes 2025 2024 Related parties 24 1,340,248 1,447,259 Third parties 24,758 72,788 Employees’ thrift plan 22(a) 33,542 30,115 Contract liabilities 15,721 18,381 1,414,269 1,568,543 Trade payables are unsecured and are usually paid within 3-12 months of recognition. The carrying amounts of trade payables are considered to approximate their fair values, due to their short- term nature. Contract liabilities represent advances from customers. Revenue recognised that was included in the contract liability balance at the beginning of the year is Saudi Riyals 18.38 million (2024: Saudi Riyals 10.95 million). Financial assets and liabilities are offset and the net amount is reported in the statement of financial position where the Company currently has a legally enforceable right to offset the recognised amounts, and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The Company has an agreement with Saudi Aramco to purchase feedstock and sell by-product in Jeddah refinery. The settlement of these transactions takes place after 90 days and net payment is made to or received from Saudi Aramco. The following table presents the recognised financial instruments that are offset, or subject to enforceable netting arrangements: Effects of offsetting on the statement of financial position Gross amounts Amounts set off Net amounts presented December 31, 2025 Related party receivables (Note 11) 522,432 (335,306) 187,126 Related party payables 1,675,554 (335,306) 1,340,248 December 31, 2024 Related party receivables (Note 11) 1,022,999 (446,729) 576,270 Related party payables 1,893,988 (446,729) 1,447,259 Medical rate (Post Retirement): 2025 2024 0.5% increase in medical rate (post-retirement) 16,676 23,760 0.5% decrease in medical rate (post-retirement) (14,957) (20,571) The sensitivity analysis is based on a change in one assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligations to significant actuarial assumptions the same method (present value of defined benefit obligations calculated with projected unit credit method at the end of the reporting period) has been applied when calculating the employee termination. The weighted average duration of the defined benefit obligation as at December 31, 2025 is 22.9 years (December 31, 2024: 23.8 years). The expected maturity analysis of undiscounted Employees’ post-retirement health care benefit as at December 31, is as follows: 2025 2024 Less than a year 3,305 3,167 Between 1 – 4 years 11,955 11,723 Between 5 – 10 years 36,676 35,887 20. Other non-current liabilities 2025 2024 Employees’ thrift plan - 4,120 Chronic Medical Circumstance 505 651 505 4,771 21. Provision for decommissioning obligation Decommissioning provision is made for the refinery closure, reclamation and dismantling obligation of the refineries. These obligations are expected to be incurred in the year in which the respective refinery is expected to be closed. Management estimates the provision based on management’s understanding of the current legal requirements in the Kingdom of Saudi Arabia, terms of the lease agreements as disclosed in note 6, engineering estimates and discount rates ranging from 2.4% to 6.01%. The provision for decommissioning obligation represents the present value of full amount of the estimated future closure and reclamation costs, based on information currently available including closure plans and applicable regulations. Future changes, if any, in regulations and cost assumptions may be significant and will be recognised when determined. Considering the broader economics of the Yanbu lease agreement, the Company is reasonably certain that the Company will exercise extension options given in the land lease agreement. As a consequence of this change in assessment, the decommissioning on the Yanbu land has been recognised at the expected end of the lease term. The Company is also maintaining a provision for decommissioning of the Jeddah facility closure. Luberef Annual Report 2025 / Notes to the Financial Statements 143142 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Motiva Trading LLC Aramco Lubricants and Retail Company Saudi Aramco Technologies Company S-Oil Europe B.V. Rabigh Refining & Petrochemical Company Agreements with Saudi Aramco 1. Purchase and sale contracts at Jeddah and Yanbu refinery The Company has agreements with Saudi Aramco for the purchase of feedstock for its Jeddah and Yanbu refineries. The Company also has an offtake agreement with Saudi Aramco for the sale of certain products. The pricing mechanism for the sale and purchase of these products is based on formulae, that has external inputs mentioned in the contracts. 2. Technical management, support services and leases Saudi Aramco also provides operational technical, utilities and human resources support to the Company on agreed terms. The Company also has two lease agreements with Saudi Aramco for land rentals and pipelines in Jeddah, which are on agreed terms. Agreement with SAMREF The Company has an agreement for the sale of certain products from its Yanbu refinery to SAMREF. The pricing mechanism is based on a formula that has external input mentioned in the contract. The Company also receives technical and management support services from SAMREF which are on agreed terms. Transactions with key management personnel Key management personnel include all the heads of departments and key personnel involved in the Company’s operations. The compensation to key management personnel for the year is shown below: 2025 2024 Short-term employee benefits 46,788 38,470 Provision for employee benefit obligations 4,506 3,416 All related party transactions were made on terms specified in the agreements with the related parties. The credit terms with all related parties range from 30 to 90 days. During the year ended December 31, 2025, the Company has remunerated Saudi Riyals 4.19 million to Board members for attending the Board of Directors’ meetings (2024: Saudi Riyals 5.30 million). Significant transactions and balances with related parties in the ordinary course of the business included in the financial statements are summarized below: Related party Nature of transaction Amount of transactions for the year ended December 31 Balance as at December 31 2025 2024 2025 2024 Due from related parties Saudi Aramco Sales of byproducts 2,915,606 3,686,564 74,838 330,200 SAMREF Sales of byproducts 630,998 773,420 58,372 128,058 S-Oil Singapore Pte. Ltd. Sales of base oil 739,600 1,109,711 1,562 77,584 S-Oil Corporation Sales of base oil 91,560 105,191 270 13,018 a) Employees’ thrift plan The movement in employees’ thrift plan is as follows: 2025 2024 Opening balance 34,235 34,704 Contribution during the year 19,345 18,772 Withdrawals during the year (20,038) (19,241) Closing balance 33,542 34,235 2025 2024 Non-current (Note 20) - 4,120 Current 33,542 30,115 33,542 34,235 Subsequent to the year end, the Company has transferred the plan to a commercial bank for managing on behalf of the Company. 23. Accrued Expenses and Other Liabilities 2025 2024 Accrued expenses 142,637 142,111 Accrual for rebates and discounts 78,515 78,750 Accrued bonus 10,850 17,000 VAT payable - 36,624 Others 6,804 - 238,806 274,485 24. Related Party Transactions and Balances Related parties comprise the shareholders and key management personnel of the Company, and entities controlled, jointly controlled or significantly influenced by such parties. Related parties also include business entities in which certain directors or senior management have an interest (other related parties). Moreover, the Company is ultimately controlled by the government of the Kingdom of Saudi Arabia. The Company applies the exemption in IAS 24 Related Party Disclosures that allows to present reduced related party disclosures regarding transactions with government related parties. Following is the list of related parties with whom the Company has significant transactions and balances: Shareholder and Immediate Parent Saudi Aramco Entities under common control Saudi Aramco Mobil Refinery Company Ltd. (“SAMREF”) S-Oil Singapore Pte. Ltd S-Oil Corporation Luberef Annual Report 2025 / Notes to the Financial Statements 145144 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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The management has categorized its geographical operations as follows: Geographic information 2025 2024 Revenues from local sales Kingdom of Saudi Arabia 5,059,605 6,002,841 Revenues from export sales United Arab Emirates 1,629,588 2,270,605 India 534,111 803,358 South Africa 292,907 226,343 Singapore 128,954 78,631 Egypt 107,250 184,683 United States of America 93,027 69,405 South Korea 89,918 105,191 Cyprus 53,052 61,431 Others 114,943 233,366 Total 8,103,355 10,035,854 26. Cost Of Revenue Notes 2025 2024 Cost of materials 6,103,219 7,765,566 Employee related costs 229,159 217,867 Depreciation 5 228,558 248,971 Freight cost 188,597 317,461 Depreciation of right-of-use assets 6 20,137 14,780 Others 154,913 135,584 6,924,583 8,700,229 27. Selling And Distribution Expenses 2025 2024 Tank rents 20,429 21,405 Demurrage charges 4,027 20,117 Export pipeline fee 3,873 2,536 Others 7,956 20,152 36,285 64,210 Related party Nature of transaction Amount of transactions for the year ended December 31 Balance as at December 31 Motiva Trading LLC Sales of base oil 53,226 66,894 10,876 23,664 S-Oil Europe B.V. Sales of base oil 61,955 - 23,735 - Aramco Lubricants and Retail Company Sales of base oil 64,230 47,648 16,846 3,746 Rabigh Refining & Petrochemical Company Technical and management support services 545 - 627 - 187,126 576,270 Due to related parties Saudi Aramco Purchase of feedstock, materials and utilities 5,472,229 7,127,840 1,264,281 1,429,693 Technical and management support services 31,728 15,209 25,987 17,490 Lease rental for Jeddah refinery land and Yanbu refinery pipeline 1,894 3,493 - - Dividends 481,950 1,015,875 - - SAMREF Technical and management support services 1,988 1,316 - - Purchase of material 27,564 4,824 10,536 76 S-Oil Corporation Purchase of base oil 267,159 431,979 17,551 - S-Oil Singapore Pte. Ltd. Rebate on sales of base oil - - 2,368 - Motiva Trading LLC Purchase of base oil 66,382 59,337 19,115 - Saudi Aramco Technologies Company Technical and management support services 356 1,251 410 - 1,340,248 1,447,259 The Company’s revenues derived from sales to Saudi Aramco and entities under its common control accounted for approximately 36% and 20% (December 31, 2024: 37% and 21%), respectively, of the total revenue. Refer to Note 11 and 32.2 for the impairment loss charge for the year ended December 31, 2025 and 2024. The Company has Saudi Riyals 10.45 million (December 31, 2024: Saudi Riyals 32.95 million) as cash with banks owned by Saudi government entities. The Company also has Saudi Riyals 240 million (December 31, 2024: Saudi Riyals 120 million) as short-term Murabaha deposits with banks owned by Saudi government entities. 25. Revenue The Company derives revenue from the transfer of goods at a point in time and revenue from freight services over a period of time. The Company has the following major product lines: 2025 2024 Revenue from base oil sales 1 4,340,143 5,268,343 Revenue from byproducts sales 3,763,212 4,767,511 8,103,355 10,035,854 By-product sales includes sales of Fuel Oil Blend, Marine Heavy Fuel Oil, Asphalt, Naphtha, Diesel, and other related products. 1 During the year ended December 31, 2024, the Company has recognised revenue from freight services amounting to Saudi Riyals 137.60 million (December 31, 2024: Saudi Riyals 236.54 million). Luberef Annual Report 2025 / Notes to the Financial Statements 147146 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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31.1 Charge for the year: The charge for the years ended December 31, consists of the following: Notes 2025 2024 Zakat charge 31.2 18,620 24,301 Reversal of income tax 31.4 - (7,916) 18,620 16,385 31.2 Components of Zakat base The significant components of the approximate Zakat base for years ended December 31 comprised the following: 2025 2024 Equity at the end of year 4,582,446 4,397,459 Provisions at the end of year 24,652 61,935 Non-current liabilities at the end of year 1,182,298 1,331,037 Additional current liabilities in relation to spare parts and consumables materials 86,467 76,533 Non-current deductible assets (5,087,925) (4,884,429) Spare parts and consumables materials (119,141) (111,378) Allowable deduction in relation to loan to employees (3,308) (4,887) Approximate Zakat base 665,489 866,270 Net income (i.e. minimum limit) 855,315 972,028 Total equity and its equivalent (i.e. maximum limit) 4,654,157 4,509,592 Zakat base as per the Zakat regulations 855,315 972,028 Zakat provision for the year 22,047 24,301 31.3 Provision for Zakat and income tax The movement in Zakat and income tax payable is as follows: Income tax Zakat Total At January 1, 2024 9,981 69,346 79,327 Prior year reversal (7,916) - (7,916) Charge for the year - 24,301 24,301 Payment (2,065) (61,827) (63,892) At December 31, 2024 - 31,820 31,820 Prior year reversal - (3,427) (3,427) Charge for the year - 22,047 22,047 Payment - (25,788) (25,788) At December 31, 2025 - 24,652 24,652 31.4 Status of assessments The Company has filed its Zakat and income tax returns up to the year ended December 31, 2024. Zakat assessments for years up to the year ended December 31, 2023, have been finalized with ZATCA. ZATCA is yet to issue its final assessments for the year ended December 31, 2024. 28. General And Administrative Expenses Notes 2025 2024 Employee related costs 160,268 167,090 Consultancy charges 46,154 58,571 Telephone and postage 5,928 6,561 Insurance 4,443 5,757 Board of Directors’ fees 4,189 5,301 Amortisation of intangible assets 3,392 3,392 Depreciation of right-of-use assets 6 2,769 2,769 Depreciation of property, plant and equipment 5 380 475 Others 25,380 31,336 252,903 281,252 29. Finance Income 2025 2024 Profit on Murabaha deposits 45,626 78,547 Finance income on unwinding of loans 1,023 1,395 46,649 79,942 30. Finance Cost Notes 2025 2024 Borrowings 53,102 84,120 Interest on lease liabilities 6 9,063 7,155 Unwinding of decommissioning provision 21 981 899 63,146 92,174 31. Zakat And Income Tax Significant components of Zakat base of the Company, which are subject to adjustment under Zakat and income tax regulations, are equity at the end of the year, the closing balance of the liabilities classified as non-current and the non-current deductible assets. Furthermore, under the new Zakat regulations, the Company’s Zakat base for each reporting period must be at least equal to its net income and cannot exceed its net equity and its equivalent. Luberef Annual Report 2025 / Notes to the Financial Statements 149148 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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b) Credit risk Credit risk arises from cash and cash equivalents, credit exposures to customers, including outstanding receivables. Risk management The stated rating is as per the global bank ratings by Moody’s Investors Service. The credit rating of banks in which the Company holds cash and cash equivalents are as follows: Credit rating (Moody’s) 2025 2024 Aa3 985,547 - A1 1,836 704,227 A3 - 30,944 Total 987,383 735,171 The short-term Murabaha deposits are held with banks having Aa3 credit rating (2024: A1 credit rating) and yields financial income at prevailing market rates. The carrying value at each reporting date is estimated to be the same as their fair value. For trade receivables, management assesses the credit quality of the customers, considering their financial position, past experience and other factors. The compliance with credit limits by customers is regularly monitored by the management. For banks, only independently credit rated parties having sound ratings are accepted. For trade receivables, internal risk control department assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set in accordance with limits set by the management. The compliance with credit limits by customers is regularly monitored by line management. A significant increase in credit risk is presumed if a debtor is more than 30 days past due in making a contractual payment. A default on a trade receivable occurs when the counterparty fails to make contractual payments within 90 days of when they fall due. The Company categorizes a receivable for write-off when a debtor fails to make contractual payments greater than 360 days past due. Where receivables have been written-off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in the statement of profit or loss and other comprehensive income. Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company writes-off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Where recoveries are made, these are recognised in the statement of profit or loss and other comprehensive income. Impairment of financial assets The Company’s maximum exposure to credit risk at the reporting date is as follows: Note 2025 2024 Employees’ home ownership receivables 8 98 711 Loans to employees 9 20,525 23,472 Trade receivables – third parties 11 240,823 398,638 Trade receivables – related parties 11 187,126 576,270 Other receivables (included within prepayments and other assets) 12 2,819 2,080 Short-term deposits 13 385,763 452,304 Cash at banks 14 420,392 716,344 Term deposits 14 566,991 18,827 1,824,537 2,188,646 32. Financial instruments 32.1 Fair value measurement of financial instruments a) Recognised fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability reflects its non-performance risk. When measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: inputs other than quoted prices included level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). As at December 31, 2025 and 2024, all of the Company’s financial assets and financial liabilities are currently classified and measured at amortised cost. Further, the carrying value of all the financial assets and liabilities classified as amortised cost approximates to the fair value on each reporting date. 32.2 Risk management framework The Company’s top management has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. Risk management is carried out by the Board of Directors. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Company management monitors compliance with the Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company’s audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the management. The Company has exposure to the following risks arising from financial instruments: • Credit risk • Liquidity risk • Market risk (currency risk, fair value and cash flow interest risk and price risk) Luberef Annual Report 2025 / Notes to the Financial Statements 151150 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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expected credit loss provision based on a provision matrix. Further, related parties’ balances have low credit risk and majority balances were not yet due at each reporting date. Trade receivables are non-derivatives financial assets carried at amortised cost and are generally on terms of 30 to 60 days. The carrying value may be affected by changes in the credit risk of the counterparties. It is not the practice of the Company to obtain collateral over third party trade receivables and these are, therefore, unsecured. The majority of the Company’s trade receivables are concentrated in the Kingdom of Saudi Arabia. As at December 31, 2025, the five largest customers accounted for 62% (December 31, 2024: 65%) of the outstanding trade receivables. c) Liquidity risk Liquidity risk is the risk that an enterprise will encounter difficulty in raising funds to meet commitments associated with financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly at an amount close to its fair value. Liquidity risk is managed by monitoring on a regular basis that sufficient funds are available through committed credit facilities to meet any future commitments. For instance, concentrations of liquidity risk may arise from the repayment terms of financial liabilities or reliance on a particular market in which to realise liquid assets. Contractual undiscounted cashflows are: 1 year or less 1 to 5 years Above 5 years Total As at December 31, 2025 Borrowings 174,949 725,338 - 900,287 Accrued expenses and other liabilities 238,806 - - 238,806 Trade payables 1,414,269 - - 1,414,269 Lease liabilities 30,061 36,668 556,964 623,693 1,858,085 762,006 556,964 3,177,055 1 year or less 1 to 5 years Above 5 years Total As at December 31, 2024 Borrowings 166,645 896,368 - 1,063,013 Accrued expenses and other liability excluding VAT payable 237,861 - - 237,861 Trade payables 1,568,543 - - 1,568,543 Lease liabilities 19,426 45,346 584,857 649,629 1,992,475 941,714 584,857 3,519,046 Liquidity risk is managed by monitoring on a regular basis that sufficient funds and banking and other credit facilities are available to meet the Company’s future commitments. d) Market risk Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimizing the returns. Market risk is the risk that the fair value or the future cash flows of a financial instrument may fluctuate as a result of changes in market profit rates or the market prices of securities due to change in credit rating of the issuer or the instrument, change in market sentiments, speculative activities, supply and demand of securities and liquidity in the market. Market risk comprises of three types of risk: currency risk, interest rate risk and other price risk. i) Currency risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in currency that is not the Company’s functional currency. The Company’s transactions are principally in Saudi Riyals, United Arab Emirates Dirhams, Euros and United States Dollars. The management believes that there is no currency risk arising from the transactions in currencies to which the Saudi Riyals is pegged. The Company’s exposure to currency risk arising from currencies to which the Saudi Riyals is not pegged is not material to these financial statements. Other receivables are considered to have low credit risk; therefore, 12 months expected loss model was used for impairment assessment. Based on management’s impairment assessment, there is no provision required in respect of these balances for all the periods presented. For trade receivables, the Company applies the simplified approach to provide for expected credit losses prescribed by IFRS 9, which permits the use of the lifetime expected credit loss provision for all trade receivables based on a provision matrix. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The provision matrix takes into account historical credit loss experience and is adjusted for average historical recovery rates. The provision matrix was developed considering probability of default based on historical collection trends of the Company’s customers and credit rating of the Company’s related parties assigned by reputed credit rating agencies and loss given default. The loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The historical loss rates are also considered to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Company has identified inflation rate, oil prices and GDP growth rate of the countries in which it sells its goods to be the most relevant macro- economic factors of forward-looking information that would impact the credit risk of the customers and accordingly adjusts the historical loss rates based on expected changes in these factors. Impairment losses on financial assets recognised in the statement of profit or loss and other comprehensive income are as follows: 2025 2024 Impairment (reversal) / impairment loss on trade receivables (Note 11) (1,409) 1,500 The following table provides information about the exposure to credit risk and ECLs for trade receivables from external customers: Gross carrying amount Weighted average loss rate Loss allowance December 31, 2025 Current (not past due) 374,011 0.42% 1,575 1–90 days past due 37,122 0.48% 179 91-180 days past due 31 6.45% 2 181–360 days past due 1,504 58.18% 875 More than 360 days past due 15,281 63.84%-100% 9,755 Total 427,949 12,386 December 31, 2024 Current (not past due) 917,146 0.45% 3,990 1–90 days past due 25,214 0.51% 130 91-180 days past due 20,308 5.23% 1,061 181–360 days past due 8,325 51.91% 5,085 More than 360 days past due 3,915 90.17%- 100% 3,529 Total 974,908 13,795 Trade receivables relate to sales made during the year to corporate customers. As at December 31, 2025, trade receivables balance from related parties’ is Saudi Riyals 187.13 million (December 31, 2024: Saudi Riyals 576.3 million). Out of this amount Saudi Riyals 163.31 million was ‘not due’, Saudi Riyals 10.54 million was due ‘1 to 90 days’ and Saudi Riyals 13.28 million was due ‘more than 365 days’ (December 31, 2024: Saudi Riyals 565.03 million was ‘not due’, Saudi Riyals 2.07 million was due ‘91 to 180 days’, Saudi Riyals 8.12 million was due ‘181 to 365 days’, and Saudi Riyals 1.06 million was due ‘more than 365 days’) having impairment loss of Saudi Riyals 5.33 million (December 31, 2024: Saudi Riyals 2.49 million). These pertain to corporate related parties that have no history of default and accordingly the probability of default is minimal. For related parties’ balances, the Company applies the simplified approach to provide for expected credit losses, which permits the use of the lifetime Luberef Annual Report 2025 / Notes to the Financial Statements 153152 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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f) Net cash / debt reconciliation Borrowings Lease liabilities Dividend payable Total As at January 1, 2024 (1,942,104) (186,270) - (2,128,374) Changes from financing cashflows: Payments 1,124,714 24,109 - 1,148,823 Dividend payments - - 1,446,993 1,446,993 Total changes from financing cashflows 1,124,714 24,109 1,446,993 2,595,816 Other changes: Dividend announced - - (1,446,993) (1,446,993) Interest (84,119) (7,155) - (91,274) Total other changes (84,119) (7,155) (1,446,993) (1,538,267) As at December 31, 2024 (901,509) (169,316) - (1,070,825) Changes from financing cashflows: Payments 169,441 31,379 - 200,820 Dividend payments - - 686,486 686,486 Total changes from financing cashflows 169,441 31,379 686,486 887,306 Other changes: Dividend announced - - (686,486) (686,486) Interest (53,102) (9,063) - (62,165) Others (1) (16,892) - (16,893) Total other changes (53,103) (25,955) (686,486) (765,544) As at December 31, 2025 (785,171) (163,892) - (949,063) 33. Commitments and Contingencies 33.1 Commitments As at December 31, 2025, the Company had outstanding capital commitments of Saudi Riyals 1,052.62 million (December 31, 2024: Saudi Riyals 881.31 million) in respect of additions to property, plant and equipment at its Jeddah and Yanbu refineries. 33.2 Contingencies As at December 31, 2025, letters of guarantees issued by banks on behalf of the Company amounted to Saudi Riyals 3.61 million (December 31, 2024: Saudi Riyals 3.86 million) and letters of credit issued by banks on behalf of the Company is Saudi Riyals 58.28 million (December 31, 2024: Saudi Riyals 59.17 million) for various business needs. ii) Interest rate risk Interest rate risks are the exposures to various risks associated with the effect of fluctuations in the prevailing interest rates on the Company’s financial position and cash flows. The Company manages the interest rate risk by regularly monitoring the interest rate profiles of its interest- bearing financial instruments. The Company’s interest-bearing liabilities, which are mainly bank borrowings, are at floating rates of interest, which are subject to re-pricing. Management monitors the changes in interest rates and believes that the fair value risks to the Company are not significant. The Company have short-term deposits and Murabaha term deposits, interest bearing financial assets at the end of reporting period. The interest rate profile of the Company’s interest-bearing financial instruments as reported to the management of the Company is as follows: 2025 2024 Financial liabilities, variable interest bearing financial instruments 785,171 901,509 The Company’s main interest rate risk arises from borrowings with variable rates, which expose the company to cash flow interest rate risk. During 2025 and 2024, the Company’s borrowings at variable rate were mainly denominated in Saudi Riyals and USD. At December 31, 2025, if interest rates had been 100 bps higher/lower with all other variables held constant, future interest on outstanding loans will increase/decrease by Saudi Riyals 10.4 million (December 31, 2024: Saudi Riyals 16.17 million). iii) Price risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from special commission rate risk or currency risk) whether those changes are caused by factors specific to the individual financial instruments or it’s issuer, or factors affecting all similar financial instruments traded in the market. The Company does not have any financial instruments which are subject to other price risk. e) Capital management The primary objective of the Company’s capital management is to ensure that it maintains a proper capital ratio in order to support its business and maximize shareholders’ value. The capital is managed by the board of directors. The capital structure includes all component of shareholders’ equity. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital on the basis of the gearing ratio. This ratio is calculated based on the net cash / debt divided by total capital. 2025 2024 Borrowings 785,171 901,509 Lease liabilities 163,892 169,316 Less: short-term deposits (385,763) (452,304) Less: cash and cash equivalents (987,383) (735,171) Net debt / (Cash) (A) (424,083) (116,650) Shareholders’ equity (B) 4,582,446 4,397,459 Total capital (A+B) 4,158,363 4,280,809 Negative gearing ratio (A / (A+B)) (10%) (3%) Luberef Annual Report 2025 / Notes to the Financial Statements 155154 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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35. Subsequent Event On February 6, 2026 (corresponding to Shaban 18, 1447H), the Board of Directors of the Company resolved to recommend the General Assembly for distribution of annual dividends for the year ended December 31, 2025 of Saudi Riyals 3.5 per share amounting to Saudi Riyals 588.91 million. No other matter has occurred up to and including the date of the approval of these financial statements by the Board of Directors which could materially affect these financial statements and the related disclosures for the year ended December 31, 2025. 36. Approval Of Financial Statements These financial statements were approved and authorized for issue by the Board of Directors of the Company on February 6, 2026, corresponding to Shaban 18, 1447H. 34. Operating segment The Company is engaged to construct, own and operate refineries of lubricating oils and to purchase, sell, transport, market, import and export lubricating oils, additives, lubricating oil blending stocks, byproducts and other related petroleum products. The Company operates in Jeddah and Yanbu region of Saudi Arabia and has an operation in Al-Hamriyah in the United Arab Emirates. For management purposes, the Company is organized as a single business unit aligned with its principal business activity. The Company has determined that the Company’s Board of Directors and the President & CEO, are the CODM and are responsible for making decisions regarding the allocation of resources and assessment of performance of the Company. The CODM monitors the operating results of the Company as a whole for the purpose of making decisions about resource allocation and performance assessment of the Company’s business. The CODM evaluates the performance on the basis of revenues, total operating expenses, earnings before interest, tax, depreciation and amortisation (EBITDA), net income and return on equity. Geographical information of the Company’s revenues is disclosed in Note 25. The Company’s property, plant and equipment assets are located in Kingdom of Saudi Arabia. Saudi Aramco is the Company’s major customer exceeding 10% revenue threshold. See Note 25. Luberef Annual Report 2025 / Notes to the Financial Statements 157156 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Glossary Glossary 160 Luberef Annual Report 2025 159158 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary
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Glossary Bright Stock – High-Viscosity Base Oil CO2e – Carbon Dioxide Equivalent CSR – Corporate Social Responsibility ERM – Enterprise Risk Management ESG – Environmental, Social, and Governance FEU – Furfural Extracting Unit FLEET – Fuel Lubricants Efficient Engine Technology FTEs – Full-Time Employees GHG – Greenhouse Gas HVGO – Heavy Vacuum Gas Oil IFRS – International Financial Reporting Standards KPI – Key Performance Indicator KSA – Kingdom of Saudi Arabia LTI – Lost Time Incident LVGO – Light Vacuum Gas Oil LubeHUB – An Industrial Value Park m3 – Cubic Meter MHFO – Marine Heavy Fuel Oil MHRSD – Ministry of Human Resources and Social Development MLDW – Mobile Lube De-waxing Unit MT – Metric Tons NCA – National Cybersecurity Authority NGO Engagements – Engagements with Non-Governmental Organization OEM – Original Equipment Manufacturer PDA – Propane De-asphalting Unit RCO – Reduced Crude Oil SOCPA – Saudi Organization for Chartered and Professional Accountants TRIR – Total Recordable Incident Rate UCO – Unconverted Oil ULSD – Ultra-Low Sulfur Diesel uODS – Ultrasonically Assisted Oxidative Desulfurization VDU – Vacuum Distillation Unit VGO – Vacuum Gas Oil Non-IFRS Measures and Definitions • Operating Capacity – The maximum volume of feedstock that Luberef can process under ideal operating conditions considering equipment limitations and typical base oil slate based on current allocated feedstock. This measure reflects the refinery’s potential throughput under optimal circumstances. • Mechanical Availability – The percentage of time that Luberef’s refining equipment and infrastructure are operational, excluding downtime due to scheduled maintenance. A higher mechanical availability indicates improved reliability and reduced unplanned disruptions. • Capacity Utilization – The ratio of total actual production to nameplate capacity, expressed as a percentage. This metric measures how efficiently Luberef operates relative to its designed production capability. • Unit Cost of Production – Total production costs (excluding depreciation and amortization) divided by the base oil quantity (net of imports) sold. This measure reflects the cost efficiency of producing and selling refined base oil products. • EBITDA – Earnings before interest, income taxes, zakat, depreciation, and amortization. This metric provides a clear view of the Company’s operating profitability before non-cash and financing costs. • ROACE (Return On Average Capital Employed) – A 12-month rolling net operating profit after tax (NOPAT) divided by the average of net financial debt and the average book value of equity. This measure evaluates Luberef’s profitability in relation to its capital base. • Free Cash Flow (FCF) – Cash flow from operating activities (CFFO) minus capital expenditures (CapEx). This metric indicates the cash available for strategic investments, debt service, or shareholder returns after maintaining operations. • Cash Conversion – Free cash flow divided by EBITDA. This ratio measures the efficiency of converting operating profits into available cash flow. • Gearing – Net financial debt divided by total capital employed. This measure assesses Luberef’s financial leverage and capital structure. • Net Financial Debt = Total Debt + Lease Liabilities – Cash and cash equivalents includes short term deposits. • Crack Margin – Realized sales price (net of freight and rebate) ($/MT) minus feedstock cost ($/MT). This metric represents the refining margin per metric ton of product sold. • GHG – Scope 1 and 2 (GRI-305 – GRI-305-2a) total direct emissions measured on CO 2 equivalent from operations covered under the defined boundaries and Indirect GHG emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the organization. • Water Discharge (GRI 303-4) – Total water discharged to third parties and directly to the sea. • Water Withdrawal (GRI 303-3-a) – Water withdrawn from the sea (total) and from third- parties (total). • Sustaining Capex to PPE – Sustaining Capex / Average (Begining balance + Ending balance of PPE and right of use). • Return on PPE – Net income / Average (Begining balance + Ending balance of PPE and right of use). Luberef Annual Report 2025 / Glossary 161160 Overview Strategic Review ESG Review Governance Report Financial Statements Glossary