Saudi Pipes’ net profit down 59% to SAR 26.2m for the first nine months of 2014

30/09/2014 Argaam Exclusive

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Saudi Steel Pipes Company, a manufacturer of welded steel pipes, reported a net profit of SAR 26.17m for the nine months ended September 30, 2014, a 59% decrease compared to the same period last year.

A net profit of SAR 6.59m was reported for Q3-2014 compared to SAR 15.6m for Q2.

Financials (M)

Item	9m 2013	9m 2014	Change‬
Revenues	670.58	716.25	6.8 %
Gross Income	105.31	77.98	(25.9 %)
Operating Income	69.16	38.77	(43.9 %)
Net Income	64.59	26.17	(59.5 %)
Average Shares	51.00	51.00	-
EPS (Riyals)	1.27	0.51	(59.5 %)

The company attributed the decline of the first nine months of 2014’s net profit, compared to the same period last year, to the following:

1) Loss from investments on its subsidiary (Titanium and Steel Manufacturing Co., Ltd.) and associate (Global Pipe Company) at total accumulated loss of SAR 24 million because both companies has started to prepare their income statement on January 1 of this year where it is normal to incur loss on the start of operations especially for new industrial factories.

2) Increase of labor cost due to salary increment and increase on number of employees intended for the company expansion projects that will start operating this year.

Q3-2014’s net profit decline compared to the same period last year, was attributed to loss from investments on its subsidiary (Titanium and Steel Manufacturing Co., Ltd.) and associate (Global Pipe Company) at total accumulated loss of SAR 7.9 million and the increase in labor cost due to salary increment and increase on number of employees.

The decline of Q3’s net profit compared to the previous period (Q2-2014) was attributed to the decrease of sales particularly on small diameter pipes due to normal seasonal decrease of sales during summertime, Ramadan and holidays.

Current Quarter Comparison (M)

Compared With The

Item	Q3 2013	Q3 2014	Change‬
Revenues	172.98	241.88	39.8 %
Gross Income	27.95	23.65	(15.4 %)
Operating Income	18.02	9.81	(45.6 %)
Net Income	16.37	6.59	(59.7 %)
Average Shares	51.00	51.00	-
EPS (Riyals)	0.32	0.13	(59.7 %)

Item	Q2 2014	Q3 2014	Change‬
Revenues	249.65	241.88	(3.1 %)
Gross Income	32.69	23.65	(27.7 %)
Operating Income	19.91	9.81	(50.7 %)
Net Income	15.55	6.59	(57.6 %)
Average Shares	51.00	51.00	-
EPS (Riyals)	0.30	0.13	(57.6 %)

Financial results (Million)

Period	Revenues	Change	Gross Income	Change	Operating Income	Change
Q1 2005	-	-	-	-	-	-
Q2 2005	-	-	-	-	-	-
Q3 2005	-	-	-	-	-	-
Q4 2005	-	-	-	-	-	-
2005	-	-	-	-	-	-
Q1 2006	-	-	-	-	-	-
Q2 2006	-	-	-	-	-	-
Q3 2006	-	-	-	-	-	-
Q4 2006	-	-	-	-	-	-
2006	565.41	-	111.45	-	75.81	-
Q1 2007	-	-	-	-	-	-
Q2 2007	-	-	-	-	-	-
Q3 2007	-	-	-	-	-	-
Q4 2007	-	-	-	-	-	-
2007	727.81	28.7 %	156.07	40.0 %	130.23	71.8 %
Q1 2008	-	-	-	-	-	-
Q2 2008	-	-	-	-	-	-
Q3 2008	-	-	-	-	-	-
Q4 2008	-	-	-	-	-	-
2008	816.87	12.2 %	172.80	10.7 %	141.70	8.8 %
Q1 2009	155.80	-	40.80	-	34.46	-
Q2 2009	145.28	-	40.19	-	34.20	-
Q3 2009	130.83	-	36.93	-	30.80	-
Q4 2009	106.74	-	21.69	-	14.17	-
2009	538.65	(34.1 %)	139.61	(19.2 %)	113.62	(19.8 %)
Q1 2010	153.44	(1.5 %)	28.11	(31.1 %)	19.93	(42.2 %)
Q2 2010	168.86	16.2 %	33.00	(17.9 %)	25.27	(26.1 %)
Q3 2010	104.11	(20.4 %)	13.27	(64.1 %)	6.79	(77.9 %)
Q4 2010	166.87	56.3 %	34.15	57.4 %	25.63	80.8 %
2010	593.28	10.1 %	108.53	(22.3 %)	77.62	(31.7 %)
Q1 2011	163.11	6.3 %	28.75	2.3 %	21.04	5.6 %
Q2 2011	153.83	(8.9 %)	29.74	(9.9 %)	21.17	(16.2 %)
Q3 2011	140.14	34.6 %	17.97	35.3 %	10.02	47.4 %
Q4 2011	172.27	3.2 %	23.03	(32.6 %)	13.91	(45.7 %)
2011	629.35	6.1 %	99.49	(8.3 %)	66.14	(14.8 %)
Q1 2012	206.85	26.8 %	29.13	1.3 %	19.36	(8.0 %)
Q2 2012	187.48	21.9 %	22.88	(23.1 %)	13.33	(37.1 %)
Q3 2012	152.16	8.6 %	19.39	7.9 %	9.87	(1.5 %)
Q4 2012	179.87	4.4 %	26.57	15.4 %	15.12	8.7 %
2012	726.36	15.4 %	97.96	(1.5 %)	57.67	(12.8 %)
Q1 2013	248.48	20.1 %	37.91	30.2 %	24.63	27.3 %
Q2 2013	249.13	32.9 %	39.45	72.5 %	26.51	98.9 %
Q3 2013	172.98	13.7 %	27.95	44.1 %	18.02	82.6 %
Q4 2013	168.76	(6.2 %)	25.76	(3.0 %)	14.09	(6.8 %)
2013	839.34	15.6 %	131.07	33.8 %	83.25	44.4 %
Q1 2014	224.73	(9.6 %)	21.65	(42.9 %)	9.05	(63.2 %)
Q2 2014	249.65	0.2 %	32.69	(17.1 %)	19.91	(24.9 %)
Q3 2014	241.88	39.8 %	23.65	(15.4 %)	9.81	(45.6 %)

Period	Revenues	Change	Gross Income	Change	Operating Income	Change
2004	-	-	-	-	-	-
2005	-	-	-	-	-	-
2006	565.41	-	111.45	-	75.81	-
2007	727.81	28.7 %	156.07	40.0 %	130.23	71.8 %
2008	816.87	12.2 %	172.80	10.7 %	141.70	8.8 %
2009	538.65	(34.1 %)	139.61	(19.2 %)	113.62	(19.8 %)
2010	593.28	10.1 %	108.53	(22.3 %)	77.62	(31.7 %)
2011	629.35	6.1 %	99.49	(8.3 %)	66.14	(14.8 %)
2012	726.36	15.4 %	97.96	(1.5 %)	57.67	(12.8 %)
2013	839.34	15.6 %	131.07	33.8 %	83.25	44.4 %

Profit Performance (Million)

Period	Net Income	Change	EPS(Riyal)	Extraordinary Income/Expense	Net Profit Before Unusual Items	EPS Before XO Items
Q1 2005	-	-	-	-	-	-
Q2 2005	-	-	-	-	-	-
Q3 2005	-	-	-	-	-	-
Q4 2005	-	-	-	-	-	-
2005	-	-	-	-	-	-
Q1 2006	-	-	-	-	-	-
Q2 2006	-	-	-	-	-	-
Q3 2006	-	-	-	-	-	-
Q4 2006	-	-	-	-	-	-
2006	66.90	-	1.91	-	66.90	1.91
Q1 2007	-	-	-	-	-	-
Q2 2007	-	-	-	-	-	-
Q3 2007	-	-	-	-	-	-
Q4 2007	-	-	-	-	-	-
2007	116.17	73.6 %	3.32	-	116.17	3.32
Q1 2008	-	-	-	-	-	-
Q2 2008	-	-	-	-	-	-
Q3 2008	-	-	-	-	-	-
Q4 2008	-	-	-	-	-	-
2008	132.32	13.9 %	3.78	-	132.32	3.78
Q1 2009	33.61	-	0.96	-	33.61	0.96
Q2 2009	35.85	-	1.02	-	35.85	1.02
Q3 2009	30.17	-	0.59	-	30.17	0.59
Q4 2009	13.19	-	0.26	-	13.19	0.26
2009	112.83	(14.7 %)	2.21	-	112.83	2.21
Q1 2010	20.02	(40.4 %)	0.39	-	20.02	0.39
Q2 2010	25.16	(29.8 %)	0.49	-	25.16	0.49
Q3 2010	6.54	(78.3 %)	0.13	-	6.54	0.13
Q4 2010	21.23	60.9 %	0.42	-	21.23	0.42
2010	72.95	(35.3 %)	1.43	-	72.95	1.43
Q1 2011	21.01	5.0 %	0.41	-	21.01	0.41
Q2 2011	21.34	(15.2 %)	0.42	-	21.34	0.42
Q3 2011	9.40	43.7 %	0.18	-	9.40	0.18
Q4 2011	13.37	(37.0 %)	0.26	-	13.37	0.26
2011	65.12	(10.7 %)	1.28	-	65.12	1.28
Q1 2012	18.32	(12.8 %)	0.36	-	18.32	0.36
Q2 2012	12.38	(42.0 %)	0.24	-	12.38	0.24
Q3 2012	8.92	(5.1 %)	0.17	-	8.92	0.17
Q4 2012	14.09	5.4 %	0.28	-	14.09	0.28
2012	53.71	(17.5 %)	1.05	-	53.71	1.05
Q1 2013	23.11	26.2 %	0.45	-	23.11	0.45
Q2 2013	25.11	102.7 %	0.49	-	25.11	0.49
Q3 2013	16.37	83.5 %	0.32	-	16.37	0.32
Q4 2013	14.86	5.4 %	0.29	-	14.86	0.29
2013	79.44	47.9 %	1.56	-	79.44	1.56
Q1 2014	4.03	(82.6 %)	0.08	-	4.03	0.08
Q2 2014	15.55	(38.1 %)	0.30	-	15.55	0.30
Q3 2014	6.59	(59.7 %)	0.13	-	6.59	0.13

Period	Net Income	Change	EPS(Riyal)	Extraordinary Income/Expense	Net Profit Before Unusual Items	EPS Before XO Items
2004	-	-	-	-	-	-
2005	-	-	-	-	-	-
2006	66.90	-	1.91	-	66.90	1.91
2007	116.17	73.6 %	3.32	-	116.17	3.32
2008	132.32	13.9 %	3.78	-	132.32	3.78
2009	112.83	(14.7 %)	2.21	-	112.83	2.21
2010	72.95	(35.3 %)	1.43	-	72.95	1.43
2011	65.12	(10.7 %)	1.28	-	65.12	1.28
2012	53.71	(17.5 %)	1.05	-	53.71	1.05
2013	79.44	47.9 %	1.56	-	79.44	1.56

Profitability

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
Q1 2005	-	-	-
Q2 2005	-	-	-
Q3 2005	-	-	-
Q4 2005	-	-	-
2005	-	-	-
Q1 2006	-	-	-
Q2 2006	-	-	-
Q3 2006	-	-	-
Q4 2006	-	-	-
2006	19.71 %	15.77 %	11.83 %
Q1 2007	-	-	-
Q2 2007	-	-	-
Q3 2007	-	-	-
Q4 2007	-	-	-
2007	21.44 %	19.70 %	15.96 %
Q1 2008	-	-	-
Q2 2008	-	-	-
Q3 2008	-	-	-
Q4 2008	-	-	-
2008	21.15 %	19.03 %	16.20 %
Q1 2009	-	-	-
Q2 2009	-	-	-
Q3 2009	-	-	-
Q4 2009	25.92 %	23.89 %	20.95 %
2009	25.92 %	23.89 %	20.95 %
Q1 2010	23.67 %	21.51 %	18.50 %
Q2 2010	21.38 %	19.23 %	15.81 %
Q3 2010	18.02 %	15.98 %	12.18 %
Q4 2010	18.29 %	16.59 %	12.30 %
2010	18.29 %	16.59 %	12.30 %
Q1 2011	18.11 %	16.61 %	12.26 %
Q2 2011	18.02 %	16.41 %	11.93 %
Q3 2011	17.73 %	16.01 %	11.70 %
Q4 2011	15.81 %	13.97 %	10.35 %
2011	15.81 %	13.97 %	10.35 %
Q1 2012	14.84 %	12.84 %	9.27 %
Q2 2012	13.16 %	11.16 %	7.57 %
Q3 2012	13.14 %	10.99 %	7.37 %
Q4 2012	13.49 %	11.08 %	7.39 %
2012	13.49 %	11.08 %	7.39 %
Q1 2013	13.90 %	11.20 %	7.62 %
Q2 2013	14.86 %	11.98 %	8.59 %
Q3 2013	15.51 %	12.68 %	9.25 %
Q4 2013	15.62 %	12.78 %	9.47 %
2013	15.62 %	12.78 %	9.47 %
Q1 2014	14.08 %	11.55 %	7.40 %
Q2 2014	13.24 %	11.01 %	6.23 %
Q3 2014	11.72 %	9.50 %	4.64 %

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
2004	-	-	-
2005	-	-	-
2006	19.71 %	15.77 %	11.83 %
2007	21.44 %	19.70 %	15.96 %
2008	21.15 %	19.03 %	16.20 %
2009	25.92 %	23.89 %	20.95 %
2010	18.29 %	16.59 %	12.30 %
2011	15.81 %	13.97 %	10.35 %
2012	13.49 %	11.08 %	7.39 %
2013	15.62 %	12.78 %	9.47 %

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
Q1 2005	-	-	-
Q2 2005	-	-	-
Q3 2005	-	-	-
Q4 2005	-	-	-
Q1 2006	-	-	-
Q2 2006	-	-	-
Q3 2006	-	-	-
Q4 2006	-	-	-
Q1 2007	-	-	-
Q2 2007	-	-	-
Q3 2007	-	-	-
Q4 2007	-	-	-
Q1 2008	-	-	-
Q2 2008	-	-	-
Q3 2008	-	-	-
Q4 2008	-	-	-
Q1 2009	26.19 %	24.41 %	21.57 %
Q2 2009	27.66 %	26.09 %	24.68 %
Q3 2009	28.23 %	26.38 %	23.06 %
Q4 2009	20.32 %	17.11 %	12.36 %
Q1 2010	18.32 %	16.07 %	13.05 %
Q2 2010	19.54 %	17.90 %	14.90 %
Q3 2010	12.75 %	11.59 %	6.28 %
Q4 2010	20.47 %	18.84 %	12.72 %
Q1 2011	17.63 %	16.19 %	12.88 %
Q2 2011	19.34 %	17.27 %	13.87 %
Q3 2011	12.82 %	11.05 %	6.71 %
Q4 2011	13.37 %	11.29 %	7.76 %
Q1 2012	14.08 %	12.06 %	8.85 %
Q2 2012	12.20 %	10.15 %	6.61 %
Q3 2012	12.74 %	10.25 %	5.86 %
Q4 2012	14.77 %	11.62 %	7.84 %
Q1 2013	15.26 %	12.27 %	9.30 %
Q2 2013	15.84 %	13.01 %	10.08 %
Q3 2013	16.16 %	13.91 %	9.46 %
Q4 2013	15.26 %	12.02 %	8.80 %
Q1 2014	9.63 %	7.75 %	1.79 %
Q2 2014	13.09 %	11.24 %	6.23 %
Q3 2014	9.78 %	7.55 %	2.73 %

Per Share Data (Riyal)

Compared With The

Period	Shares Outstanding (M)	EPS (Riyal)	Adjusted EPS (Riyal)	Book Value (BV)
Q1 2005	-	-	-	-
Q2 2005	-	-	-	-
Q3 2005	-	-	-	-
Q4 2005	-	-	-	-
Q1 2006	-	-	-	-
Q2 2006	-	-	-	-
Q3 2006	-	-	-	-
Q4 2006	-	-	-	-
Q1 2007	-	-	-	-
Q2 2007	-	-	-	-
Q3 2007	-	-	-	-
Q4 2007	-	-	-	-
Q1 2008	-	-	-	-
Q2 2008	-	-	-	-
Q3 2008	-	-	-	-
Q4 2008	-	-	-	-
Q1 2009	35.00	-	-	13.16
Q2 2009	35.00	-	-	14.04
Q3 2009	51.00	-	-	17.29
Q4 2009	51.00	2.21	2.21	17.55
Q1 2010	51.00	1.95	1.95	15.88
Q2 2010	51.00	1.74	1.74	16.33
Q3 2010	51.00	1.27	1.27	15.92
Q4 2010	51.00	1.43	1.43	16.31
Q1 2011	51.00	1.45	1.45	15.67
Q2 2011	51.00	1.37	1.37	16.03
Q3 2011	51.00	1.43	1.43	15.43
Q4 2011	51.00	1.28	1.28	15.55
Q1 2012	51.00	1.22	1.22	15.04
Q2 2012	51.00	1.05	1.05	15.24
Q3 2012	51.00	1.04	1.04	15.38
Q4 2012	51.00	1.05	1.05	15.56
Q1 2013	51.00	1.15	1.15	15.95
Q2 2013	51.00	1.40	1.40	15.66
Q3 2013	51.00	1.54	1.54	15.19
Q4 2013	51.00	1.56	1.56	15.39
Q1 2014	51.00	1.18	1.18	15.41
Q2 2014	51.00	1.00	1.00	15.66
Q3 2014	51.00	0.80	0.80	15.75

Period	Shares Outstanding (M)	EPS (Riyal)	Adjusted EPS (Riyal)	Book Value (BV)
2004	-	-	-	-
2005	-	-	-	-
2006	35.00	1.91	1.91	9.39
2007	35.00	3.32	3.32	11.85
2008	35.00	3.78	3.78	12.20
2009	51.00	2.21	2.21	17.55
2010	51.00	1.43	1.43	16.31
2011	51.00	1.28	1.28	15.55
2012	51.00	1.05	1.05	15.56
2013	51.00	1.56	1.56	15.39

Multiple Ratios (End of Period Price)

Compared With The

Period	P/E	Adjusted P/E	Price/book
Q1 2005	-	-	-
Q2 2005	-	-	-
Q3 2005	-	-	-
Q4 2005	-	-	-
Q1 2006	-	-	-
Q2 2006	-	-	-
Q3 2006	-	-	-
Q4 2006	-	-	-
Q1 2007	-	-	-
Q2 2007	-	-	-
Q3 2007	-	-	-
Q4 2007	-	-	-
Q1 2008	-	-	-
Q2 2008	-	-	-
Q3 2008	-	-	-
Q4 2008	-	-	-
Q1 2009	-	-	-
Q2 2009	-	-	-
Q3 2009	-	-	1.80
Q4 2009	15.41	15.41	1.94
Q1 2010	16.96	16.96	2.08
Q2 2010	15.61	15.61	1.66
Q3 2010	19.09	19.09	1.53
Q4 2010	16.85	16.85	1.48
Q1 2011	16.10	16.10	1.49
Q2 2011	19.35	19.35	1.66
Q3 2011	16.49	16.49	1.53
Q4 2011	22.87	22.87	1.88
Q1 2012	23.04	23.04	1.87
Q2 2012	20.84	20.84	1.43
Q3 2012	23.10	23.10	1.56
Q4 2012	24.02	24.02	1.63
Q1 2013	22.49	22.49	1.62
Q2 2013	18.54	18.54	1.65
Q3 2013	19.45	19.45	1.97
Q4 2013	22.79	22.79	2.31
Q1 2014	31.68	31.68	2.43
Q2 2014	33.82	33.82	2.15
Q3 2014	47.24	47.24	2.41

Period	P/E	Adjusted P/E	Price/book
2004	-	-	-
2005	-	-	-
2006	-	-	-
2007	-	-	-
2008	-	-	-
2009	15.41	15.41	1.94
2010	16.85	16.85	1.48
2011	22.87	22.87	1.88
2012	24.02	24.02	1.63
2013	22.79	22.79	2.31

Financial Ratios

	Current
Market Cap (M Riyal)	3,468.00
Enterprise Value (EV) (M)	4,012.81
Shares Outstanding ((M))	51.00
EPS ( Riyal) (TTM)	4.22
Book Value (BV) ( Riyal)	16.51
Par Value ( Riyal)	10.00
Adjusted P/E (Last12)	16.11
P/E (TTM)	16.11
Price/book	4.12
Return on Average Assets (%) (TTM)	11.1
Return on Average Equity (%) (TTM)	28.6

Saudi Steel Pipe Co. (SSP)

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Saudi Pipes’ net profit down 59% to SAR 26.2m for the first nine months of 2014

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Financials (M)

Current Quarter Comparison (M)

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Financial results (Million)

Profit Performance (Million)

Profit Performance (Million)

Profitability

Profitability

Per Share Data (Riyal)

Per Share Data (Riyal)

Multiple Ratios (End of Period Price)

Ratios And Multiples

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Saudi Steel Pipe Co. (SSP)

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Saudi Pipes’ net profit down 59% to SAR 26.2m for the first nine months of 2014

View other reports

Financials (M)

Current Quarter Comparison (M)

Financial results (Million)

Financial results (Million)

Profit Performance (Million)

Profit Performance (Million)

Profitability

Profitability

Per Share Data (Riyal)

Per Share Data (Riyal)

Multiple Ratios (End of Period Price)

Ratios And Multiples

Financial Ratios

Share Price

Saudi Steel Pipe Co. (SSP)

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