Saudi Steel Pipe earns SAR 90.9 mln in H1 2023, Q2 at SAR 84.6 mln

Saudi Steel Pipe Co. (SSP) reported a net profit of SAR 90.9 million in H1 2023, compared to SAR 26.3 million in the year-earlier period.

H1 gross profit increased to SAR 116.44 million from SAR 56.23 million in H1 2022, mainly due to the increase in volume partially due to Global Pipe Company acquisition, improved efficiency and mix of products sold.

The company reported bargain purchase gains amounting to SAR 40.33 million in H1 2023 as a result of acquiring an additional 22.27% interest in Global Pipe, bringing SSP’s total ownership to 57.27%. 

Q2 2023 net profit increased by more than seven-fold year-on-year (YoY) to SAR 84.6 million.

Gross profit increased to SAR 92.58 million in Q2 2023 from SAR 27.28 million in Q2 2022, mainly as a result of the increase in volume partially due to Global Pipe Company acquisition, improved efficiency and mix of products sold.

The company also recorded a bargain purchase gain amounting to SAR 40.33 million in Q2 2023 as a result of acquiring an additional 22.27% stake in Global Pipe Co., which increased SSP’s total ownership to 57.27%.  

SSP recorded an EBITDA of SAR 87.50 million in Q2 2023, compared to SAR 29.16 million in Q2 2022. 

SSP recorded positive free cash flows of SAR 44.97 million in Q2 2023 compared to SAR 89.02 million in Q2 2022. Net debt increased to SAR 540.34 million at the end of Q2 2023 from SAR 102.06 million at the end of Q2 2022, as a result of consolidating the financial statements of Global Pipe Company.

On a sequential basis, net earnings surged from SAR 6.37 million in Q1 2023.

Shareholders’ equity, no minority equity, reached SAR 641.45 million as of June 30, 2023, compared to SAR 521.48 million in prior year period.

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