- Luberef reported a second-quarter profit of 245.2 million riyals, down 18% compared to the previous year.
- Revenue for the same period totaled 2.25 billion riyals, also experiencing an 18% year-over-year decline.
- Operating profit decreased to 257.1 million riyals, registering a 19% drop from the previous year.
- The company announced a dividend payment of 1 riyal per share for the first half of the year.
- Luberef attributed the profit decline to lower sales and prices of base oils, as well as decreasing prices and sales volumes of by-products.
- Despite these declines, base oil crack margins saw an increase.
- Analyst recommendations include 3 ‘buy’ ratings, 4 ‘hold’, and no ‘sell’ ratings.
A look at Luberef Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysing Luberef‘s long-term outlook using the Smartkarma Smart Scores reveals a mixed picture. While the company excels in providing dividends to its investors and shows strong momentum in its operations, there are areas of concern. With moderate scores in value and resilience, Luberef may face challenges in terms of its growth potential. Despite these drawbacks, the company’s ability to consistently reward its shareholders with dividends and its current positive momentum indicate a stable foundation for future performance.
Luberef, an oil company serving customers globally, showcases a strong track record in delivering dividends and maintaining operational momentum. However, the company’s value and growth aspects receive more moderate ratings, suggesting potential areas for improvement. With a solid foundation in resilience and an emphasis on rewarding investors, Luberef‘s long-term success will likely hinge on its ability to enhance value and foster growth opportunities while capitalizing on its current strengths.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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