Saudi Pipes’ 2014 net profit down 60% to SAR 31.5 mln

22/01/2015 Argaam Exclusive

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Saudi Steel Pipes Company, a manufacturer of welded steel pipes, reported 2014 net profit of SAR 31.5 million, a 60 percent decrease compared to the last year.

A net profit of SAR 5.3 million was reported for Q4-2014 compared to SAR 6.6 million for Q3.

Financials (M)

Item	2013	2014	Change‬
Revenues	839.34	857.99	2.2 %
Gross Income	131.07	97.25	(25.8 %)
Operating Income	83.25	47.28	(43.2 %)
Net Income	79.44	31.20	(60.7 %)
Average Shares	51.00	51.00	-
EPS (Riyals)	1.56	0.61	(60.7 %)

The company attributed the decline of 2014’s net profit, compared to the last year, to:

1- Loss from investments of the subsidiary (Titanium and Steel Manufacturing Co., Ltd.) and associate (Global Pipe Company) at total accumulated loss of SAR 28.9 million because both companies has started to prepare their income statement on January 1, 2014, where it is normal to incur loss on the start-up of operations especially for new industrial factories.

2- Increase of labor cost due to salary increment and increase of number of employees intended for the company expansion projects where some has started to operate in 2014 and the others will start to operate in 2015 as per company announcement related to our expansions dated March 30, June 29 and December 30 2014.

Q4-2014’s net profit decline compared to the same period last year, to:
1- Decrease of sales of medium diameter pipes because of unscheduled maintenance at the medium diameter factory where the company has also utilized to update the electronic control panels. Such unscheduled maintenance resulted in postponing deliveries from fourth quarter 2014 to 2015. Deliveries were already started in January 2015 and that will be reflected on the first quarter 2015 results.

2- The increase of labor cost due to salary increment and increase of number of employees for the expansion projects.

3- Due mainly to loss from investments of the subsidiary (Titanium and Steel Manufacturing Co., Ltd.) and associate (Global Pipe Company) at total accumulated loss of SAR 5.2 million. The loss is less than the previous quarters which indicates an improvement in their operations.

The decline of Q4’s net profit compared to the previous period (Q3-2014) was attributed to:

1- Decrease of sales of medium diameter pipes because of unscheduled maintenance at the medium diameter factory where the company has also utilized to update the electronic control panels. Such unscheduled maintenance resulted delaying deliveries from fourth quarter 2014 to 2015. Deliveries were already started in January 2015 and that will be reflected in the first quarter 2015 results.
2- The increase of labor cost due to salary increment and increase of number of employees for the expansion projects.

Current Quarter Comparison (M)

Compared With The

Item	Q4 2013	Q4 2014	Change‬
Revenues	168.76	141.74	(16.0 %)
Gross Income	25.76	19.38	(24.8 %)
Operating Income	14.09	7.03	(50.1 %)
Net Income	14.86	5.30	(64.3 %)
Average Shares	51.00	51.00	-
EPS (Riyals)	0.29	0.10	(64.3 %)

Item	Q3 2014	Q4 2014	Change‬
Revenues	241.88	141.74	(41.4 %)
Gross Income	23.65	19.38	(18.0 %)
Operating Income	9.81	7.03	(28.4 %)
Net Income	6.59	5.30	(19.6 %)
Average Shares	51.00	51.00	-
EPS (Riyals)	0.13	0.10	(19.6 %)

Financial results (Million)

Period	Revenues	Change	Gross Income	Change	Operating Income	Change
Q1 2005	-	-	-	-	-	-
Q2 2005	-	-	-	-	-	-
Q3 2005	-	-	-	-	-	-
Q4 2005	-	-	-	-	-	-
2005	-	-	-	-	-	-
Q1 2006	-	-	-	-	-	-
Q2 2006	-	-	-	-	-	-
Q3 2006	-	-	-	-	-	-
Q4 2006	-	-	-	-	-	-
2006	565.41	-	111.45	-	75.81	-
Q1 2007	-	-	-	-	-	-
Q2 2007	-	-	-	-	-	-
Q3 2007	-	-	-	-	-	-
Q4 2007	-	-	-	-	-	-
2007	727.81	28.7 %	156.07	40.0 %	130.23	71.8 %
Q1 2008	-	-	-	-	-	-
Q2 2008	-	-	-	-	-	-
Q3 2008	-	-	-	-	-	-
Q4 2008	-	-	-	-	-	-
2008	816.87	12.2 %	172.80	10.7 %	141.70	8.8 %
Q1 2009	155.80	-	40.80	-	34.46	-
Q2 2009	145.28	-	40.19	-	34.20	-
Q3 2009	130.83	-	36.93	-	30.80	-
Q4 2009	106.74	-	21.69	-	14.17	-
2009	538.65	(34.1 %)	139.61	(19.2 %)	113.62	(19.8 %)
Q1 2010	153.44	(1.5 %)	28.11	(31.1 %)	19.93	(42.2 %)
Q2 2010	168.86	16.2 %	33.00	(17.9 %)	25.27	(26.1 %)
Q3 2010	104.11	(20.4 %)	13.27	(64.1 %)	6.79	(77.9 %)
Q4 2010	166.87	56.3 %	34.15	57.4 %	25.63	80.8 %
2010	593.28	10.1 %	108.53	(22.3 %)	77.62	(31.7 %)
Q1 2011	163.11	6.3 %	28.75	2.3 %	21.04	5.6 %
Q2 2011	153.83	(8.9 %)	29.74	(9.9 %)	21.17	(16.2 %)
Q3 2011	140.14	34.6 %	17.97	35.3 %	10.02	47.4 %
Q4 2011	172.27	3.2 %	23.03	(32.6 %)	13.91	(45.7 %)
2011	629.35	6.1 %	99.49	(8.3 %)	66.14	(14.8 %)
Q1 2012	206.85	26.8 %	29.13	1.3 %	19.36	(8.0 %)
Q2 2012	187.48	21.9 %	22.88	(23.1 %)	13.33	(37.1 %)
Q3 2012	152.16	8.6 %	19.39	7.9 %	9.87	(1.5 %)
Q4 2012	179.87	4.4 %	26.57	15.4 %	15.12	8.7 %
2012	726.36	15.4 %	97.96	(1.5 %)	57.67	(12.8 %)
Q1 2013	248.48	20.1 %	37.91	30.2 %	24.63	27.3 %
Q2 2013	249.13	32.9 %	39.45	72.5 %	26.51	98.9 %
Q3 2013	172.98	13.7 %	27.95	44.1 %	18.02	82.6 %
Q4 2013	168.76	(6.2 %)	25.76	(3.0 %)	14.09	(6.8 %)
2013	839.34	15.6 %	131.07	33.8 %	83.25	44.4 %
Q1 2014	224.73	(9.6 %)	21.65	(42.9 %)	9.05	(63.2 %)
Q2 2014	249.65	0.2 %	32.69	(17.1 %)	19.91	(24.9 %)
Q3 2014	241.88	39.8 %	23.65	(15.4 %)	9.81	(45.6 %)
Q4 2014	141.74	(16.0 %)	19.38	(24.8 %)	7.03	(50.1 %)
2014	857.99	2.2 %	97.25	(25.8 %)	47.28	(43.2 %)

Period	Revenues	Change	Gross Income	Change	Operating Income	Change
2005	-	-	-	-	-	-
2006	565.41	-	111.45	-	75.81	-
2007	727.81	28.7 %	156.07	40.0 %	130.23	71.8 %
2008	816.87	12.2 %	172.80	10.7 %	141.70	8.8 %
2009	538.65	(34.1 %)	139.61	(19.2 %)	113.62	(19.8 %)
2010	593.28	10.1 %	108.53	(22.3 %)	77.62	(31.7 %)
2011	629.35	6.1 %	99.49	(8.3 %)	66.14	(14.8 %)
2012	726.36	15.4 %	97.96	(1.5 %)	57.67	(12.8 %)
2013	839.34	15.6 %	131.07	33.8 %	83.25	44.4 %
2014	857.99	2.2 %	97.25	(25.8 %)	47.28	(43.2 %)

Profit Performance (Million)

Period	Net Income	Change	EPS(Riyal)	Extraordinary Income/Expense	Net Profit Before Unusual Items	EPS Before XO Items
Q1 2005	-	-	-	-	-	-
Q2 2005	-	-	-	-	-	-
Q3 2005	-	-	-	-	-	-
Q4 2005	-	-	-	-	-	-
2005	-	-	-	-	-	-
Q1 2006	-	-	-	-	-	-
Q2 2006	-	-	-	-	-	-
Q3 2006	-	-	-	-	-	-
Q4 2006	-	-	-	-	-	-
2006	66.90	-	1.91	-	66.90	1.91
Q1 2007	-	-	-	-	-	-
Q2 2007	-	-	-	-	-	-
Q3 2007	-	-	-	-	-	-
Q4 2007	-	-	-	-	-	-
2007	116.17	73.6 %	3.32	-	116.17	3.32
Q1 2008	-	-	-	-	-	-
Q2 2008	-	-	-	-	-	-
Q3 2008	-	-	-	-	-	-
Q4 2008	-	-	-	-	-	-
2008	132.32	13.9 %	3.78	-	132.32	3.78
Q1 2009	33.61	-	0.96	-	33.61	0.96
Q2 2009	35.85	-	1.02	-	35.85	1.02
Q3 2009	30.17	-	0.59	-	30.17	0.59
Q4 2009	13.19	-	0.26	-	13.19	0.26
2009	112.83	(14.7 %)	2.21	-	112.83	2.21
Q1 2010	20.02	(40.4 %)	0.39	-	20.02	0.39
Q2 2010	25.16	(29.8 %)	0.49	-	25.16	0.49
Q3 2010	6.54	(78.3 %)	0.13	-	6.54	0.13
Q4 2010	21.23	60.9 %	0.42	-	21.23	0.42
2010	72.95	(35.3 %)	1.43	-	72.95	1.43
Q1 2011	21.01	5.0 %	0.41	-	21.01	0.41
Q2 2011	21.34	(15.2 %)	0.42	-	21.34	0.42
Q3 2011	9.40	43.7 %	0.18	-	9.40	0.18
Q4 2011	13.37	(37.0 %)	0.26	-	13.37	0.26
2011	65.12	(10.7 %)	1.28	-	65.12	1.28
Q1 2012	18.32	(12.8 %)	0.36	-	18.32	0.36
Q2 2012	12.38	(42.0 %)	0.24	-	12.38	0.24
Q3 2012	8.92	(5.1 %)	0.17	-	8.92	0.17
Q4 2012	14.09	5.4 %	0.28	-	14.09	0.28
2012	53.71	(17.5 %)	1.05	-	53.71	1.05
Q1 2013	23.11	26.2 %	0.45	-	23.11	0.45
Q2 2013	25.11	102.7 %	0.49	-	25.11	0.49
Q3 2013	16.37	83.5 %	0.32	-	16.37	0.32
Q4 2013	14.86	5.4 %	0.29	-	14.86	0.29
2013	79.44	47.9 %	1.56	-	79.44	1.56
Q1 2014	4.03	(82.6 %)	0.08	-	4.03	0.08
Q2 2014	15.55	(38.1 %)	0.30	-	15.55	0.30
Q3 2014	6.59	(59.7 %)	0.13	-	6.59	0.13
Q4 2014	5.30	(64.3 %)	0.10	-	5.30	0.10
2014	31.20	(60.7 %)	0.61	-	31.20	0.61

Period	Net Income	Change	EPS(Riyal)	Extraordinary Income/Expense	Net Profit Before Unusual Items	EPS Before XO Items
2005	-	-	-	-	-	-
2006	66.90	-	1.91	-	66.90	1.91
2007	116.17	73.6 %	3.32	-	116.17	3.32
2008	132.32	13.9 %	3.78	-	132.32	3.78
2009	112.83	(14.7 %)	2.21	-	112.83	2.21
2010	72.95	(35.3 %)	1.43	-	72.95	1.43
2011	65.12	(10.7 %)	1.28	-	65.12	1.28
2012	53.71	(17.5 %)	1.05	-	53.71	1.05
2013	79.44	47.9 %	1.56	-	79.44	1.56
2014	31.20	(60.7 %)	0.61	-	31.20	0.61

Profitability

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
Q1 2005	-	-	-
Q2 2005	-	-	-
Q3 2005	-	-	-
Q4 2005	-	-	-
2005	-	-	-
Q1 2006	-	-	-
Q2 2006	-	-	-
Q3 2006	-	-	-
Q4 2006	-	-	-
2006	19.71 %	15.77 %	11.83 %
Q1 2007	-	-	-
Q2 2007	-	-	-
Q3 2007	-	-	-
Q4 2007	-	-	-
2007	21.44 %	19.70 %	15.96 %
Q1 2008	-	-	-
Q2 2008	-	-	-
Q3 2008	-	-	-
Q4 2008	-	-	-
2008	21.15 %	19.03 %	16.20 %
Q1 2009	-	-	-
Q2 2009	-	-	-
Q3 2009	-	-	-
Q4 2009	25.92 %	23.89 %	20.95 %
2009	25.92 %	23.89 %	20.95 %
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 %
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 %
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 %
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 %
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 %
2014	11.33 %	9.27 %	3.64 %

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
2005	-	-	-
2006	19.71 %	15.77 %	11.83 %
2007	21.44 %	19.70 %	15.96 %
2008	21.15 %	19.03 %	16.20 %
2009	25.92 %	23.89 %	20.95 %
2010	18.29 %	16.59 %	12.30 %
2011	15.81 %	13.97 %	10.35 %
2012	13.49 %	11.08 %	7.39 %
2013	15.62 %	12.78 %	9.47 %
2014	11.33 %	9.27 %	3.64 %

Period	Gross Margin	OIBDA Margin	Net Margin Before Unusual Items
Q1 2005	-	-	-
Q2 2005	-	-	-
Q3 2005	-	-	-
Q4 2005	-	-	-
Q1 2006	-	-	-
Q2 2006	-	-	-
Q3 2006	-	-	-
Q4 2006	-	-	-
Q1 2007	-	-	-
Q2 2007	-	-	-
Q3 2007	-	-	-
Q4 2007	-	-	-
Q1 2008	-	-	-
Q2 2008	-	-	-
Q3 2008	-	-	-
Q4 2008	-	-	-
Q1 2009	26.19 %	24.41 %	21.57 %
Q2 2009	27.66 %	26.09 %	24.68 %
Q3 2009	28.23 %	26.38 %	23.06 %
Q4 2009	20.32 %	17.11 %	12.36 %
Q1 2010	18.32 %	16.07 %	13.05 %
Q2 2010	19.54 %	17.90 %	14.90 %
Q3 2010	12.75 %	11.59 %	6.28 %
Q4 2010	20.47 %	18.84 %	12.72 %
Q1 2011	17.63 %	16.19 %	12.88 %
Q2 2011	19.34 %	17.27 %	13.87 %
Q3 2011	12.82 %	11.05 %	6.71 %
Q4 2011	13.37 %	11.29 %	7.76 %
Q1 2012	14.08 %	12.06 %	8.85 %
Q2 2012	12.20 %	10.15 %	6.61 %
Q3 2012	12.74 %	10.25 %	5.86 %
Q4 2012	14.77 %	11.62 %	7.84 %
Q1 2013	15.26 %	12.27 %	9.30 %
Q2 2013	15.84 %	13.01 %	10.08 %
Q3 2013	16.16 %	13.91 %	9.46 %
Q4 2013	15.26 %	12.02 %	8.80 %
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 %

Per Share Data (Riyal)

Compared With The

Period	Shares Outstanding (M)	EPS (Riyal)	Adjusted EPS (Riyal)	Book Value (BV)
Q1 2005	-	-	-	-
Q2 2005	-	-	-	-
Q3 2005	-	-	-	-
Q4 2005	-	-	-	-
Q1 2006	-	-	-	-
Q2 2006	-	-	-	-
Q3 2006	-	-	-	-
Q4 2006	-	-	-	-
Q1 2007	-	-	-	-
Q2 2007	-	-	-	-
Q3 2007	-	-	-	-
Q4 2007	-	-	-	-
Q1 2008	-	-	-	-
Q2 2008	-	-	-	-
Q3 2008	-	-	-	-
Q4 2008	-	-	-	-
Q1 2009	35.00	-	-	13.16
Q2 2009	35.00	-	-	14.04
Q3 2009	51.00	-	-	17.29
Q4 2009	51.00	2.21	2.21	17.55
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

Period	Shares Outstanding (M)	EPS (Riyal)	Adjusted EPS (Riyal)	Book Value (BV)
2005	-	-	-	-
2006	35.00	1.91	1.91	9.39
2007	35.00	3.32	3.32	11.85
2008	35.00	3.78	3.78	12.20
2009	51.00	2.21	2.21	17.55
2010	51.00	1.43	1.43	16.31
2011	51.00	1.28	1.28	15.55
2012	51.00	1.05	1.05	15.56
2013	51.00	1.56	1.56	15.39
2014	51.00	0.61	0.61	15.75

Multiple Ratios (End of Period Price)

Compared With The

Period	P/E	Adjusted P/E	Price/book
Q1 2005	-	-	-
Q2 2005	-	-	-
Q3 2005	-	-	-
Q4 2005	-	-	-
Q1 2006	-	-	-
Q2 2006	-	-	-
Q3 2006	-	-	-
Q4 2006	-	-	-
Q1 2007	-	-	-
Q2 2007	-	-	-
Q3 2007	-	-	-
Q4 2007	-	-	-
Q1 2008	-	-	-
Q2 2008	-	-	-
Q3 2008	-	-	-
Q4 2008	-	-	-
Q1 2009	-	-	-
Q2 2009	-	-	-
Q3 2009	-	-	1.80
Q4 2009	15.41	15.41	1.94
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

Period	P/E	Adjusted P/E	Price/book
2005	-	-	-
2006	-	-	-
2007	-	-	-
2008	-	-	-
2009	15.41	15.41	1.94
2010	16.85	16.85	1.48
2011	22.87	22.87	1.88
2012	24.02	24.02	1.63
2013	22.79	22.79	2.31
2014	39.29	39.29	1.53

Financial Ratios

	Current
Market Cap (M Riyal)	3,483.30
Enterprise Value (EV) (M)	4,028.11
Shares Outstanding ((M))	51.00
EPS ( Riyal) (TTM)	4.22
Book Value (BV) ( Riyal)	16.51
Par Value ( Riyal)	10.00
Adjusted P/E (Last12)	16.18
P/E (TTM)	16.18
Price/book	4.14
Return on Average Assets (%) (TTM)	11.1
Return on Average Equity (%) (TTM)	28.6

Saudi Steel Pipe Co. (SSP)

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Saudi Pipes’ 2014 net profit down 60% to SAR 31.5 mln

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Financials (M)

Current Quarter Comparison (M)

Financial results (Million)

Financial results (Million)

Profit Performance (Million)

Profit Performance (Million)

Profitability

Profitability

Per Share Data (Riyal)

Per Share Data (Riyal)

Multiple Ratios (End of Period Price)

Ratios And Multiples

Financial Ratios

Share Price

Saudi Steel Pipe Co. (SSP)

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Saudi Pipes’ 2014 net profit down 60% to SAR 31.5 mln

View other reports

Financials (M)

Current Quarter Comparison (M)

Financial results (Million)

Financial results (Million)

Profit Performance (Million)

Profit Performance (Million)

Profitability

Profitability

Per Share Data (Riyal)

Per Share Data (Riyal)

Multiple Ratios (End of Period Price)

Ratios And Multiples

Financial Ratios

Share Price

Saudi Steel Pipe Co. (SSP)

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