Riyadh - Mubasher: Saudi companies received an official notification from the Saudi Arabian Oil Company (Saudi Aramco) on Wednesday, January 1, 2025, stating an increase in the price of fuel used in operational activities.

A number of companies expected, according to their disclosures today on “Nadawul”, that this increase would have a financial impact in the rise in production costs, which will appear as of the financial results for the first quarter of 2025 AD.

Luberef expects 0.2% increase in total cost of revenues

In a statement on the Saudi Stock Exchange (Tadawul) today, Thursday, Saudi Aramco Base Oil Company (Luberef) announced that it had received an official notification from Saudi Arabian Oil Company (Saudi Aramco) stating an increase in the price of sales gas used to operate the company’s facility in Yanbu, effective from 01-01-2025.

Luberef expects the financial impact of this increase to be equivalent to 0.2% of the total cost of revenues (SAR 13.5 million) according to the preliminary financial statements for the nine months ending September 30, 2024, and this impact will appear starting from the first quarter of the fiscal year 2025.

Luberef explained that the current amendment has no material impact on the company's net profits during the coming period, and the company will continue its efforts to enhance its operational efficiency to reduce the impact of price increases and continue to provide value to its shareholders as part of its business transformation program.

AMAC expects cost of sales to rise by 2.5%

The Major Mining Factories Company (AMAC) announced the direct financial impact estimated at an increase in the company’s cost of sales by approximately 2.5%, and this impact is expected to appear starting from the first quarter of fiscal year 2025.

The company said that it will work in the coming periods to explore ways to reduce the financial impact of this amendment on the company's profits, and will continue to implement its plans to reduce costs and improve production and operational efficiency, and will work with government agencies to explore ways to diversify energy sources.

Saudi Ceramics receives two notifications from Aramco and Gas

Saudi Ceramics Company also announced that it received two notifications from both Saudi Aramco and the Natural Gas Distribution Company stating that there will be an amendment to the prices of fuel products used in production operations starting from 01-01-2025.

The company explained that this amendment will have a financial impact in the form of an increase in the cost of production, which will appear as of the financial results for the first quarter of 2025. When the financial impact is reliably assessed, it will be announced later, and the company will work hard to mitigate the effects of this amendment.

Saudi Aramco raised diesel prices in the Kingdom by 44% to 1.66 riyals per liter, according to the company’s latest updates on its website, while it kept gasoline prices at 2.18 riyals per liter for 91-octane gasoline, and 2.33 riyals per liter for 95-octane gasoline, and set other fuel prices at 1.33 riyals for kerosene, and 1.04 riyals for liquefied petroleum gas.