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

03/08/2023 Argaam Exclusive

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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.

Financials (M)

Item	6m 2022	6m 2023	Change‬
Revenues	395.90	528.27	33.4 %
Gross Income	56.24	116.44	107.1 %
Operating Income	36.96	81.46	120.4 %
Net Income	26.27	90.93	246.1 %
Average Shares	51.00	51.00	-
EPS (Riyals)	0.52	1.78	246.1 %

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%.

Current Quarter Comparison (M)

Compared With The

Item	Q2 2022	Q2 2023	Change‬
Revenues	211.82	361.38	70.6 %
Gross Income	27.28	92.58	239.4 %
Operating Income	17.83	74.94	320.2 %
Net Income	11.74	84.56	620.1 %
Average Shares	51.00	51.00	-
EPS (Riyals)	0.23	1.66	620.1 %

Item	Q1 2023	Q2 2023	Change‬
Revenues	166.89	361.38	116.5 %
Gross Income	23.86	92.58	288.1 %
Operating Income	6.52	74.94	1048.7 %
Net Income	6.37	84.56	1227.2 %
Average Shares	51.00	51.00	-
EPS (Riyals)	0.12	1.66	1227.2 %

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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Financial results (Million)

Period	Revenues	Change	Gross Income	Change	Net Income	Change	EPS(Riyal)
Q1 2014	224.73	(9.6 %)	21.65	(42.9 %)	4.03	(82.6 %)	0.08
Q2 2014	249.65	0.2 %	32.69	(17.1 %)	15.55	(38.1 %)	0.30
Q3 2014	241.88	39.8 %	23.65	(15.4 %)	6.59	(59.7 %)	0.13
Q4 2014	141.74	(16.0 %)	19.38	(24.8 %)	5.30	(64.3 %)	0.10
2014	857.99	2.2 %	97.25	(25.8 %)	31.20	(60.7 %)	0.61
Q1 2015	248.49	10.6 %	29.24	35.0 %	11.41	183.3 %	0.22
Q2 2015	279.97	12.1 %	38.88	18.9 %	23.46	50.8 %	0.46
Q3 2015	179.88	(25.6 %)	21.52	(9.0 %)	8.02	21.6 %	0.16
Q4 2015	143.55	1.3 %	11.55	(40.4 %)	(1.30)	(124.6 %)	(0.03)
2015	852.09	(0.7 %)	95.78	(1.5 %)	33.38	7.0 %	0.65
Q1 2016	194.34	(21.8 %)	28.94	(1.0 %)	8.52	(25.4 %)	0.17
Q2 2016	151.35	(45.9 %)	16.01	(58.8 %)	3.04	(87.0 %)	0.06
Q3 2016	122.61	(31.8 %)	10.46	(51.4 %)	5.21	(35.0 %)	0.10
Q4 2016	136.47	(4.9 %)	(1.56)	(113.5 %)	(61.90)	(4,650.5 %)	(1.21)
2016	604.77	(29.0 %)	53.85	(43.8 %)	(45.13)	(235.2 %)	(0.88)
Q1 2017	128.01	(34.1 %)	18.12	(37.4 %)	10.21	19.8 %	0.20
Q2 2017	162.10	7.1 %	22.32	39.4 %	7.69	152.9 %	0.15
Q3 2017	194.56	58.7 %	24.07	130.1 %	(14.46)	(377.4 %)	(0.28)
Q4 2017	211.75	55.2 %	28.94	1954.9 %	15.65	125.3 %	0.31
2017	696.42	15.2 %	93.44	73.5 %	19.09	142.3 %	0.37
Q1 2018	177.14	38.4 %	16.80	(7.3 %)	(5.04)	(149.3 %)	(0.10)
Q2 2018	156.29	(3.6 %)	(0.43)	(101.9 %)	(36.83)	(578.8 %)	(0.72)
Q3 2018	126.48	(35.0 %)	(11.82)	(149.1 %)	(24.15)	(67.0 %)	(0.47)
Q4 2018	186.29	(12.0 %)	(6.61)	(122.9 %)	(102.65)	(755.8 %)	(2.01)
2018	646.20	(7.2 %)	(2.07)	(102.2 %)	(168.66)	(983.4 %)	(3.31)
Q1 2019	195.31	10.3 %	12.53	(25.4 %)	0.33	106.5 %	0.01
Q2 2019	161.85	3.6 %	0.88	306.5 %	(10.17)	72.4 %	(0.20)
Q3 2019	157.80	24.8 %	0.13	101.1 %	(14.12)	41.5 %	(0.28)
Q4 2019	156.60	(15.9 %)	(0.36)	94.6 %	(2.87)	97.2 %	(0.06)
2019	671.55	3.9 %	13.18	736.3 %	(26.83)	84.1 %	(0.53)
Q1 2020	122.34	(37.4 %)	4.49	(64.1 %)	(17.77)	(5567.7 %)	(0.35)
Q2 2020	58.26	(64.0 %)	(14.97)	(1793.0 %)	(27.02)	(165.8 %)	(0.53)
Q3 2020	150.32	(4.7 %)	21.46	17071.2 %	9.58	167.8 %	0.19
Q4 2020	154.73	(1.2 %)	8.11	2360.2 %	0.74	125.7 %	0.01
2020	474.90	(29.3 %)	19.14	45.3 %	(34.48)	(28.5 %)	(0.68)
Q1 2021	92.08	(24.7 %)	2.35	(47.6 %)	(8.48)	52.3 %	(0.17)
Q2 2021	88.48	51.9 %	4.83	132.2 %	(8.08)	70.1 %	(0.16)
Q3 2021	83.32	(44.6 %)	7.58	(64.7 %)	15.92	66.2 %	0.31
Q4 2021	109.62	(29.2 %)	12.57	55.0 %	1.57	112.6 %	0.03
2021	373.49	(21.4 %)	27.34	42.8 %	0.93	102.7 %	0.02
Q1 2022	184.08	99.9 %	28.96	1130.6 %	14.53	271.4 %	0.28
Q2 2022	211.82	139.4 %	27.28	465.4 %	11.74	245.4 %	0.23
Q3 2022	204.78	145.8 %	30.36	300.4 %	16.79	5.5 %	0.33
Q4 2022	146.94	34.1 %	20.57	63.6 %	11.14	609.9 %	0.22
2022	747.62	100.2 %	107.16	292.0 %	54.21	5716.1 %	1.06
Q1 2023	166.89	(9.3 %)	23.86	(17.6 %)	6.37	(56.1 %)	0.12
Q2 2023	361.38	70.6 %	92.58	239.4 %	84.56	620.1 %	1.66

Period	Revenues	Change	Gross Income	Change	Net Income	Change	EPS(Riyal)
2013	839.34	15.6 %	131.07	33.8 %	79.44	47.9 %	1.56
2014	857.99	2.2 %	97.25	(25.8 %)	31.20	(60.7 %)	0.61
2015	852.09	(0.7 %)	95.78	(1.5 %)	33.38	7.0 %	0.65
2016	604.77	(29.0 %)	53.85	(43.8 %)	(45.13)	(235.2 %)	(0.88)
2017	696.42	15.2 %	93.44	73.5 %	19.09	142.3 %	0.37
2018	646.20	(7.2 %)	(2.07)	(102.2 %)	(168.66)	(983.4 %)	(3.31)
2019	671.55	3.9 %	13.18	736.3 %	(26.83)	84.1 %	(0.53)
2020	474.90	(29.3 %)	19.14	45.3 %	(34.48)	(28.5 %)	(0.68)
2021	373.49	(21.4 %)	27.34	42.8 %	0.93	102.7 %	0.02
2022	747.62	100.2 %	107.16	292.0 %	54.21	5716.1 %	1.06

Profitability

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
Q1 2014	14.08 %	11.55 %	7.40 %
Q2 2014	13.24 %	11.01 %	6.23 %
Q3 2014	11.72 %	9.50 %	4.64 %
Q4 2014	11.35 %	9.10 %	3.67 %
2014	11.33 %	9.27 %	3.64 %
Q1 2015	11.90 %	9.69 %	4.41 %
Q2 2015	12.19 %	10.10 %	5.13 %
Q3 2015	12.82 %	10.81 %	5.79 %
Q4 2015	11.88 %	10.12 %	5.00 %
2015	11.24 %	9.48 %	4.04 %
Q1 2016	12.65 %	10.74 %	4.98 %
Q2 2016	11.66 %	9.63 %	2.88 %
Q3 2016	10.94 %	9.23 %	2.85 %
Q4 2016	8.90 %	7.52 %	(0.02 %)
2016	8.90 %	7.52 %	(0.02 %)
Q1 2017	7.99 %	7.20 %	0.29 %
Q2 2017	8.98 %	8.23 %	1.14 %
Q3 2017	10.13 %	9.54 %	1.32 %
Q4 2017	13.42 %	13.14 %	6.13 %
2017	13.42 %	13.29 %	6.13 %
Q1 2018	12.36 %	12.33 %	3.68 %
Q2 2018	9.38 %	9.68 %	0.53 %
Q3 2018	4.98 %	5.28 %	(4.37 %)
Q4 2018	(0.32 %)	(0.60 %)	(10.16 %)
2018	(0.32 %)	(0.60 %)	(10.16 %)
Q1 2019	(0.95 %)	(1.21 %)	(9.08 %)
Q2 2019	(0.75 %)	(1.12 %)	(8.16 %)
Q3 2019	0.99 %	0.71 %	(6.36 %)
Q4 2019	1.96 %	1.48 %	(3.99 %)
2019	1.96 %	1.48 %	(4.00 %)
Q1 2020	0.86 %	(1.76 %)	(7.50 %)
Q2 2020	(2.16 %)	(5.78 %)	(12.48 %)
Q3 2020	2.18 %	(1.06 %)	(7.81 %)
Q4 2020	3.93 %	2.15 %	(7.10 %)
2020	4.03 %	2.55 %	(7.26 %)
Q1 2021	3.73 %	4.92 %	(5.53 %)
Q2 2021	7.57 %	9.59 %	(1.29 %)
Q3 2021	5.46 %	7.78 %	(4.67 %)
Q4 2021	7.32 %	9.87 %	(5.01 %)
2021	7.32 %	9.87 %	(5.01 %)
Q1 2022	11.59 %	13.24 %	0.92 %
Q2 2022	12.97 %	14.24 %	4.10 %
Q3 2022	13.96 %	14.80 %	6.28 %
Q4 2022	14.33 %	14.63 %	7.25 %
2022	14.33 %	14.63 %	7.25 %
Q1 2023	13.97 %	13.19 %	6.30 %
Q2 2023	19.02 %	17.69 %	10.02 %

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
2013	15.62 %	12.78 %	9.47 %
2014	11.33 %	9.27 %	3.64 %
2015	11.24 %	9.48 %	4.04 %
2016	8.90 %	7.52 %	(0.02 %)
2017	13.42 %	13.29 %	6.13 %
2018	(0.32 %)	(0.60 %)	(10.16 %)
2019	1.96 %	1.48 %	(4.00 %)
2020	4.03 %	2.55 %	(7.26 %)
2021	7.32 %	9.87 %	(5.01 %)
2022	14.33 %	14.63 %	7.25 %

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
Q1 2014	9.63 %	7.75 %	1.79 %
Q2 2014	13.09 %	11.24 %	6.23 %
Q3 2014	9.78 %	7.55 %	2.73 %
Q4 2014	13.67 %	10.11 %	3.74 %
Q1 2015	11.77 %	9.97 %	4.59 %
Q2 2015	13.89 %	12.40 %	8.38 %
Q3 2015	11.97 %	10.03 %	5.03 %
Q4 2015	8.04 %	6.07 %	(0.91 %)
Q1 2016	14.89 %	12.44 %	4.38 %
Q2 2016	10.58 %	8.92 %	2.01 %
Q3 2016	8.53 %	8.24 %	5.88 %
Q4 2016	(1.14 %)	(1.67 %)	(13.83 %)
Q1 2017	14.15 %	13.63 %	7.97 %
Q2 2017	13.77 %	12.30 %	4.75 %
Q3 2017	12.37 %	12.41 %	4.71 %
Q4 2017	13.67 %	14.17 %	7.39 %
Q1 2018	9.48 %	10.07 %	(2.84 %)
Q2 2018	(0.27 %)	(0.24 %)	(10.13 %)
Q3 2018	(9.35 %)	(9.50 %)	(19.09 %)
Q4 2018	(3.55 %)	(5.00 %)	(11.09 %)
Q1 2019	6.41 %	6.98 %	0.17 %
Q2 2019	0.55 %	0.12 %	(6.28 %)
Q3 2019	0.08 %	0.29 %	(8.95 %)
Q4 2019	(0.23 %)	(2.76 %)	(1.83 %)
Q1 2020	3.67 %	(5.62 %)	(14.52 %)
Q2 2020	(25.69 %)	(30.69 %)	(46.38 %)
Q3 2020	14.28 %	15.90 %	6.37 %
Q4 2020	5.24 %	7.31 %	0.48 %
Q1 2021	2.56 %	5.52 %	(9.21 %)
Q2 2021	5.45 %	7.07 %	(9.13 %)
Q3 2021	9.10 %	11.92 %	(4.47 %)
Q4 2021	11.47 %	14.24 %	1.43 %
Q1 2022	15.73 %	16.21 %	7.89 %
Q2 2022	12.88 %	13.44 %	5.54 %
Q3 2022	14.83 %	15.23 %	8.20 %
Q4 2022	14.00 %	13.54 %	7.58 %
Q1 2023	14.29 %	10.07 %	3.82 %
Q2 2023	25.62 %	24.28 %	14.92 %

Per Share Data (Riyal)

Compared With The

Period	Shares Outstanding (M)	EPS (Riyal)	Adjusted EPS (Riyal)	Book Value (BV)
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
Q4 2014	51.00	0.62	0.62	15.75
Q1 2015	51.00	0.76	0.76	15.93
Q2 2015	51.00	0.92	0.92	15.82
Q3 2015	51.00	0.94	0.96	15.44
Q4 2015	51.00	0.82	0.84	15.23
Q1 2016	51.00	0.76	0.78	15.38
Q2 2016	51.00	0.36	0.38	15.47
Q3 2016	51.00	0.30	0.34	15.56
Q4 2016	51.00	(0.88)	0.00	13.95
Q1 2017	51.00	(0.85)	0.03	14.16
Q2 2017	51.00	(0.76)	0.12	14.31
Q3 2017	51.00	(1.15)	0.16	14.02
Q4 2017	51.00	0.37	0.84	14.31
Q1 2018	51.00	0.08	0.54	14.20
Q2 2018	51.00	(0.80)	0.08	13.48
Q3 2018	51.00	(0.99)	(0.58)	13.01
Q4 2018	51.00	(3.31)	(1.29)	10.97
Q1 2019	51.00	(3.20)	(1.18)	10.98
Q2 2019	51.00	(2.68)	(1.07)	10.78
Q3 2019	51.00	(2.48)	(0.87)	10.50
Q4 2019	51.00	(0.53)	(0.53)	10.35
Q1 2020	51.00	(0.88)	(0.88)	10.01
Q2 2020	51.00	(1.21)	(1.21)	9.48
Q3 2020	51.00	(0.75)	(0.75)	9.69
Q4 2020	51.00	(0.68)	(0.68)	9.67
Q1 2021	51.00	(0.49)	(0.49)	9.50
Q2 2021	51.00	(0.12)	(0.12)	9.35
Q3 2021	51.00	0.00	(0.38)	9.66
Q4 2021	51.00	0.02	(0.37)	9.71
Q1 2022	51.00	0.47	0.08	9.99
Q2 2022	51.00	0.86	0.47	10.23
Q3 2022	51.00	0.88	0.88	10.55
Q4 2022	51.00	1.06	1.06	10.79
Q1 2023	51.00	0.90	0.90	10.92
Q2 2023	51.00	2.33	1.73	12.58

Period	Shares Outstanding (M)	EPS (Riyal)	Adjusted EPS (Riyal)	Book Value (BV)
2013	51.00	1.56	1.56	15.39
2014	51.00	0.61	0.61	15.75
2015	51.00	0.65	0.67	15.23
2016	51.00	(0.88)	0.00	13.95
2017	51.00	0.37	0.84	14.31
2018	51.00	(3.31)	(1.29)	10.97
2019	51.00	(0.53)	(0.53)	10.35
2020	51.00	(0.68)	(0.68)	9.67
2021	51.00	0.02	(0.37)	9.71
2022	51.00	1.06	1.06	10.79

Multiple Ratios (End of Period Price)

Compared With The

Period	P/E	Adjusted P/E	Price/book
Q1 2014	31.68	31.68	2.43
Q2 2014	33.82	33.82	2.15
Q3 2014	47.24	47.24	2.41
Q4 2014	38.95	38.95	1.53
Q1 2015	37.18	37.18	1.78
Q2 2015	31.20	31.20	1.81
Q3 2015	22.33	21.87	1.37
Q4 2015	26.67	26.03	1.43
Q1 2016	23.24	22.64	1.15
Q2 2016	50.51	47.84	1.17
Q3 2016	44.18	39.13	0.86
Q4 2016	NEG	NEG	1.37
Q1 2017	NEG	More than 100	1.19
Q2 2017	NEG	More than 100	1.08
Q3 2017	NEG	More than 100	1.21
Q4 2017	42.98	19.21	1.12
Q1 2018	More than 100	40.66	1.54
Q2 2018	NEG	More than 100	1.47
Q3 2018	NEG	NEG	1.68
Q4 2018	NEG	NEG	1.65
Q1 2019	NEG	NEG	2.17
Q2 2019	NEG	NEG	2.04
Q3 2019	NEG	NEG	2.02
Q4 2019	NEG	NEG	2.00
Q1 2020	NEG	NEG	1.45
Q2 2020	NEG	NEG	1.76
Q3 2020	NEG	NEG	2.40
Q4 2020	NEG	NEG	2.88
Q1 2021	NEG	NEG	3.18
Q2 2021	NEG	NEG	3.47
Q3 2021	More than 100	NEG	3.06
Q4 2021	More than 100	NEG	2.60
Q1 2022	53.79	More than 100	2.53
Q2 2022	23.68	42.97	1.99
Q3 2022	23.77	23.77	1.97
Q4 2022	16.84	16.84	1.66
Q1 2023	23.37	23.37	1.93
Q2 2023	11.48	15.47	2.13

Period	P/E	Adjusted P/E	Price/book
2013	22.79	22.79	2.31
2014	39.29	39.29	1.53
2015	33.23	32.24	1.43
2016	NEG	NEG	1.37
2017	42.98	19.21	1.12
2018	NEG	NEG	1.65
2019	NEG	NEG	2.00
2020	NEG	NEG	2.88
2021	More than 100	NEG	2.60
2022	16.84	16.84	1.66

Business Segments (Million)

Compared With The

Period	Steele Pipes	Process equipment
Q1 2016	189.38	4.96
Q2 2016	142.38	8.96
Q3 2016	108.37	14.24
Q4 2016	117.56	18.91
Q1 2017	112.31	15.70
Q2 2017	147.84	14.26
Q3 2017	166.54	28.03
Q4 2017	190.06	21.69
Q1 2018	164.97	12.17
Q2 2018	143.73	12.56
Q3 2018	112.50	13.98
Q4 2018	166.54	19.76
Q1 2019	176.76	18.56
Q2 2019	138.74	23.10
Q3 2019	127.23	30.57
Q4 2019	139.82	16.77
Q1 2020	111.60	10.74
Q2 2020	58.26	14.37
Q3 2020	150.31	6.23
Q4 2020	154.73	2.26
Q1 2021	92.08	2.62

Period	Steele Pipes	Process equipment
2016	557.70	47.07
2017	616.74	79.68
2018	587.74	58.46
2019	582.55	89.00
2020	474.90	33.62

Analysts Estimates (Million)

Item	Q2 2023 (e)	Q2 2023 (a)	Change‬
Average	7.40	84.56	1042.74 %

Estimates vs Actual (Million)

Item	Q2 2023 (e)	Q2 2023 (a)	Change
SNB Capital	7.40	84.56	1,042.7 %

Financial Ratios

	Current
Market Cap (M Riyal)	3,564.90
Enterprise Value (EV) (M)	4,107.18
Shares Outstanding ((M))	51.00
EPS ( Riyal) (TTM)	4.37
Book Value (BV) ( Riyal)	15.25
Par Value ( Riyal)	10.00
Adjusted P/E (Last12)	18.55
P/E (TTM)	16.00
Price/book	4.58
Return on Average Assets (%) (TTM)	15.6
Return on Average Equity (%) (TTM)	33.4

Saudi Steel Pipe Co. (SSP)

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

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Financials (M)

Current Quarter Comparison (M)

Financial results (Million)

Financial results (Million)

Profitability

Profitability

Per Share Data (Riyal)

Per Share Data (Riyal)

Multiple Ratios (End of Period Price)

Ratios And Multiples

Business Segments (Million)

Revenue by Business Segment (Latest) 2023 Q2

Analysts Estimates (Million)

Analysts Estimates (Million)

Estimates vs Actual (Million)

Estimates Accuracy

Financial Ratios

Share Price

Saudi Steel Pipe Co. (SSP)

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

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Financials (M)

Current Quarter Comparison (M)

Financial results (Million)

Financial results (Million)

Profitability

Profitability

Per Share Data (Riyal)

Per Share Data (Riyal)

Multiple Ratios (End of Period Price)

Ratios And Multiples

Business Segments (Million) Q1 2021

Revenue by Business Segment (Latest) 2023 Q2

Analysts Estimates (Million)

Analysts Estimates (Million)

Estimates vs Actual (Million)

Estimates Accuracy

Financial Ratios

Share Price

Saudi Steel Pipe Co. (SSP)

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Business Segments (Million)