Saudi Steel Pipe Company (SSP) reported lower revenue and net profit in the first half of 2026, mainly reflecting lower sales volumes, an expected credit loss and the impact of a one-off gain recorded in the comparable period last year.
The company’s net sales declined 12pct YoY to SAR 692 mln (USD 184.5 mln) in Jan-Jun 2026 from SAR 790 mln (USD 210.7 mln), which SSP attributed to lower sales volumes.
Net profit fell 32pct YoY to SAR 82 mln (USD 21.9 mln) from SAR 121 mln (USD 32.3 mln). The decline partly reflected SAR 54 mln (USD 14.4 mln) in land settlement compensation recorded in H1 2025, as well as an expected credit loss booked during the current period.
These factors were partly offset by lower selling, marketing and distribution expenses, mainly due to non-recurring charges recorded in the previous year, as well as lower finance costs following a reduction in borrowings.
Despite lower revenue, operating performance remained relatively stable. EBITDA increased slightly to SAR 176 mln (USD 46.9 mln) from SAR 174 mln (USD 46.4 mln), while the EBITDA margin improved to 25pct from 22pct. SSP said the margin improvement was mainly driven by the product sales mix and operating efficiencies despite lower volumes.
In the second quarter, revenue declined 9pct YoY to SAR 306 mln (USD 81.6 mln). Net profit fell 58pct to SAR 30 mln (USD 8 mln), compared with SAR 71 mln (USD 18.9 mln) a year earlier. The comparable quarter included the SAR 54 mln land settlement compensation, while the latest quarter was also affected by an expected credit loss.
SSP manufactures electrically resistance welded (ERW) steel pipes for the energy, industrial, and construction sectors across the Middle East and North Africa. The company’s product portfolio includes oil country tubular goods (OCTG), line pipes, API and premium connections, accessories, and related services. SSP has an annual production capacity exceeding 400,000 tons. In January 2019, Tenaris acquired a 47.79pct stake in SSP, after which the company was rebranded as TenarisSaudiSteelPipes.
1 USD / 3.75 SAR