Arabian Pipes maintains market share of 40-45% in oil, gas sectors: CEO

Arabian Pipes Co. (APC) maintains a market share of 40-45% in the projects and supplies that rely on the oil and gas sectors, as well as other industries, CEO Ahmed Al-Lohaidan told Argaam in an interview.

The positive results for 2024 reflect the company’s efficiency, as well as its technical and commercial ability to win and implement basic projects according to the highest quality standards. APC generated revenue of SAR 1.13 billion in 2024, an increase of 4.5% from SAR 1.08 billion a year earlier.

The company's success in managing raw material supply chains, the efficient delivery of final products in accordance with supply schedules, and improving the utilization of production capacity contributed to these outstanding results.

He explained that the sales volume for 2024 reflects the projects the company secured in previous periods and executed over the past year, exceeding SAR 1.10 billion.

The company's CEO expects the continued launch of new projects in the coming period, aligning with the broader vision for gas and clean energy projects, in addition to completing ongoing projects.

Several projects would be launched by Saudi Aramco as well as oil and gas contractors in the near future, Al-Lohaidan said, emphasizing that local industries demonstrated high efficiency.

He also highlighted that Arabian Pipes is one of the leading companies in this field, implementing the highest quality standards and striving to localize the latest pipe manufacturing technologies and solutions while developing human resources.

The Tadawul-listed firm recently secured contracts for supplying gas pipes through local contractors, with a total quantity exceeding 60,000 tons, scheduled for delivery in the first half of 2025. It also has projects under study and evaluation that will be announced in due course, along with existing projects worth SAR 1.029 billion at the beginning of 2025.

The production capacity of the Riyadh plant is 160,000 tons, while the Jubail plant operates with a capacity of 300,000 tons. Monthly production depends on the sizes and thicknesses required for contracted projects and their delivery schedules.

The company is also working on upgrading and modernizing production lines to meet future demands.

Regarding the company’s decision to increase its capital by 50% through a one-for-two bonus issue, Al-Luhaidan said the goal is to strengthen the capital base and support future growth plans to meet market needs and diversify target sectors.

On performance outlook, the top executive said the company secured significant projects in the oil and gas sectors, as well as in oil well drilling, with manufacturing and supply extending through 2025 and beyond.

Arabian Pipes is also focusing on other sectors such as water wells and pipelines, construction, as well as power supply for factories. Furthermore, it aims to enhance its presence in export markets to diversify revenue sources and secure additional projects that will support the company’s performance, Al-Lohaidan concluded.