Saudi Steel Pipe Co. (SSP) reported a substantial rise in net profit, reaching SAR 213 mln (USD 56.6 mln) in the first nine months of 2024, up 61pct YoY.
This growth was driven by higher gross profit, fueled by an increase in sales volume and the consolidation of Global Pipe Company’s (GPC) full-period results for January to September 2024, compared to only a partial consolidation from May 17 in the same period of 2023. SSP also benefited from improved efficiency and a favorable product mix.
However, the gains were partly offset by the recognition of a bargain purchase gain following SSP’s acquisition of an additional 22.27pct stake in GPC. Additionally, selling, administrative, marketing, and distribution expenses rose due to the full-period consolidation of GPC’s results.
SSP expanded its ownership in GPC to 57.27pct by acquiring a 22.27pct stake from EEW Holding GMBH & Co KG. Based in Jubail City, GPC manufactures Longitudinally Submerged Arc Welded (LSAW) pipes ranging from 16″ to 60″.
SSP’s sales revenue for January to September 2024 increased to SAR 1.36 bln (USD 362 mln), up from SAR 846 mln in the same period last year.
SSP specializes in manufacturing and supplying Electrically Resistance Welded (ERW) steel pipes, serving the energy, industrial, and construction domains across the Middle East and North Africa. The company offers a comprehensive array of products, including Oil Country Tubular Goods (OCTG), line pipes, API and premium connections, accessories, and associated services. With an annual production capacity surpassing 400,000 tons and encompassing sizes ranging from 1/2 inches to 20 inches OD, SSP also provides coating services for up to 30 inches and bending services for up to 60 inches OD.
1 USD / 3.75 SAR
