Saudi Pipe cuts H1 2019 losses by 77%

01/08/2019 Argaam Exclusive

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Share Price

72.50
0.30 0.42 %

Saudi Steel Pipe Co. (SSP)

Saudi Steel Pipe Co. (SSP) trimmed net losses after zakat and tax by 76.5 percent year-on-year (YoY) to SAR 9.8 million for H1 2019 as the company incurred non-recurring fixed asset impairment charges of SAR 21 million in H1 2018.

 

SSP cut its loss share from its associate, Global Pipe Co. to SAR 4.81 million compared to SAR 8.02 million a year earlier. It also cited lower selling, marketing and distribution expenses, zakat and income tax charges.



Financials (M)

Item 6m 2018 6m 2019 Change‬
Revenues 333.43 357.16 7.1 %
Gross Income 16.37 13.41 (18.1 %)
Operating Income (6.92) (8.67) (25.4 %)
Net Income (41.86) (9.84) 76.5 %
Average Shares 51.00 51.00 -
EPS (Riyals) (0.82) (0.19) 76.5 %

In Q2 2019, net losses after zakat and tax narrowed by 72.4 percent YoY to SAR 10.2 million driven by a rise in other income and the company’s profit share from Global Pipe Co., along with lower selling, marketing and distribution expenses

 

The pipe manufacturer swung to net losses in Q2 2019 against net profit of SAR 0.32 million in Q1 2019. SSP cited a decline in gross profit and profit share from Global Pipe Co. It was also hit by higher administrative expenses.



Current Quarter Comparison (M)

Compared With The
Item Q2 2018 Q2 2019 Change‬
Revenues 156.29 161.85 3.6 %
Gross Income (0.43) 0.88 306.5 %
Operating Income (12.53) (11.00) 12.2 %
Net Income (36.83) (10.17) 72.4 %
Average Shares 51.00 51.00 -
EPS (Riyals) (0.72) (0.20) 72.4 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2010 153.44 (1.5 %) 28.11 (31.1 %) 20.02 (40.4 %) 0.39
Q2 2010 168.86 16.2 % 33.00 (17.9 %) 25.16 (29.8 %) 0.49
Q3 2010 104.11 (20.4 %) 13.27 (64.1 %) 6.54 (78.3 %) 0.13
Q4 2010 166.87 56.3 % 34.15 57.4 % 21.23 60.9 % 0.42
Q1 2011 163.11 6.3 % 28.75 2.3 % 21.01 5.0 % 0.41
Q2 2011 153.83 (8.9 %) 29.74 (9.9 %) 21.34 (15.2 %) 0.42
Q3 2011 140.14 34.6 % 17.97 35.3 % 9.40 43.7 % 0.18
Q4 2011 172.27 3.2 % 23.03 (32.6 %) 13.37 (37.0 %) 0.26
Q1 2012 206.85 26.8 % 29.13 1.3 % 18.32 (12.8 %) 0.36
Q2 2012 187.48 21.9 % 22.88 (23.1 %) 12.38 (42.0 %) 0.24
Q3 2012 152.16 8.6 % 19.39 7.9 % 8.92 (5.1 %) 0.17
Q4 2012 179.87 4.4 % 26.57 15.4 % 14.09 5.4 % 0.28
Q1 2013 248.48 20.1 % 37.91 30.2 % 23.11 26.2 % 0.45
Q2 2013 249.13 32.9 % 39.45 72.5 % 25.11 102.7 % 0.49
Q3 2013 172.98 13.7 % 27.95 44.1 % 16.37 83.5 % 0.32
Q4 2013 168.76 (6.2 %) 25.76 (3.0 %) 14.86 5.4 % 0.29
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
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)
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)
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
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)
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)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
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 %
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 %
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 %
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 %
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 %
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 %
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 %)
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 %
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 %)
Q1 2019 (0.95 %) (1.21 %) (9.08 %)
Q2 2019 (0.75 %) (1.12 %) (8.16 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
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
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

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
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
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 More than 50 47.84 1.17
Q3 2016 44.18 39.13 0.86
Q4 2016 NEG NEG 1.37
Q1 2017 NEG More than 50 1.19
Q2 2017 NEG More than 50 1.08
Q3 2017 NEG More than 50 1.21
Q4 2017 42.98 19.21 1.12
Q1 2018 More than 50 40.66 1.54
Q2 2018 NEG More than 50 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

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

Analysts Estimates (Million)

Item Q2 2019 (e) Q2 2019 (a) Change‬
Average 8.20 (10.17) (224.0 %)

Estimates vs Actual (Million)

Item Q2 2019 (e) Q2 2019 (a) Change
SNB Capital 8.20 (10.17) (224.0) %

Current
Market Cap (M Riyal) 3,697.50
Enterprise Value (EV) (M) 4,239.78
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) 19.24
P/E (TTM) 16.60
Price/book 4.75
Return on Average Assets (%) (TTM) 15.6
Return on Average Equity (%) (TTM) 33.4

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