Saudi Steel Pipe posts SAR 173.1M profit in 2023; Q4 at SAR 57.2M

Saudi Steel Pipe Co. (SSP) reported a net profit after minority interest of SAR 173.1 million for 2023, compared to SAR 54.2 million a year earlier.

Revenue rose to SAR 1.33 billion in 2023 from SAR 748 million in 2022 on higher volumes. This boost was attributed to the consolidation of post-acquisition results from Global Pipe Company (GPC), as SSP increased its total ownership in GPC to 57.27%.

Gross profit grew to SAR 283 million in 2023 from SAR 107 million in 2022, driven by an improved mix of products sold. Additionally, SSP recognized a bargain purchase gain of SAR 40 million last year by acquiring an additional 22.27% stake in GPC.

Other income increased to SAR 10 million in 2023 from SAR 3 million in 2022, mainly due to consolidating GPC’s post-acquisition results.

Additionally, Zakat and tax expenses decreased to SAR 7 million last year from SAR 10 million a year before.

Q4 2023 net earnings reached SAR 57.2 million, compared to SAR 11 million in the prior-year period.

On a sequential basis, Q4 net profit surged 129% from SAR 24.96 million in Q3 2023.

Shareholders’ equity, after minority interest, amounted to SAR 722 million by Dec. 31, 2023, compared to SAR 551 million in a year-earlier period.

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