Posted on 26 Oct 2022
Oil giant Saudi Aramco has awarded Riyadh-based Arabian Pipes Company (APC) with a SAR 22 million ($5.86m) steel pipe supply contract, Kallanish notes.
During the first nine months of 2022, APC was awarded only by Aramco four steel pipe supply contracts with a total value of SAR 583m. McDermott Arabia Company awarded a SAR 450m contract at the beginning of October. The financial impact will mostly appear from the beginning of the first quarter of 2023.
The latest contract was signed off on 24 October, with the duration indicated as six months, according to a bourse filing.
The contract's financial impact and relevant period will be in Q2 2023, the pipemaker says.
APC's first-half-of-2022 revenue fell by 47.5% on-year to SAR 133.1m, and the firm registered a net loss of SAR 17.5m versus a net loss of SAR 12m in H1 2021. The Aramco contracts will boost the firm’s revenue and profitability.
APC owns and operates two mills, one in Riyadh with a 160,000 tonnes/year capacity of ERW pipe and the second in Jubail with a 300,000 t/y capacity of LSAW pipe. The company has a threading line for casing pipe, and a coating facility and slitting line for steel coil. Besides domestic sales, it exports to other Gulf Cooperation Council countries and the wider Middle East and North Africa region.
Source:Kallanish
