Saudi Steel Pipe H1 2022 turns to profit of SAR 26.3 mln; Q2 at SAR 11.7 mln

Saudi Steel Pipe Co. swung to a net profit after Zakat and tax of SAR 26.3 million in the first six months of 2022, from a net loss of SAR 16.6 million in the year-earlier period.

The profit was primarily driven by higher gross profit due to the increase in sales volume, improved mix of sold products, efficiency improvement and optimization of direct structural cost.

Meanwhile, the company’s share of loss from an affiliate, Global Pipe Co., decreased, and administrative expenses fell mainly on lower indirect structural cost and service indemnity cost.

In Q2 2022, the company turned to a net profit after Zakat and tax of SAR 11.7 million, from a loss of SAR 8.08 million in the year-earlier period.

On a sequential basis, net profit dropped 19.2% from SAR 14.53 million in Q1 2022, on lower gross profit and higher selling, marketing and distribution expenses.

Total shareholders’ equity, excluding minority interest, stood at SAR 521.48 million by the end of H1 2022, compared to SAR 476.63 million in the year-earlier period.

Accumulated losses reached SAR 34.1 million as of June 30, 2022, representing 6.69% of the company’s SAR 510 million capital.

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