RIYADH: Dammam-based East Pipes Integrated Co. for Industry has secured a contract worth over SR440 million ($117 million) with Saudi energy giant Aramco for the manufacturing and supply of steel pipes for key projects within the Kingdom.
In its filing to Tadawul, the manufacturer of spiral steel pipes stated that the entire contract work is set to be completed within a 13-month period. The company further emphasized that the financial impact of the contract will be evident in the second and third quarters of the financial year 2024/2025.
Established in 2010, East Pipes is one of the leading manufacturers of helical submerged arc welded pipes, with an annual production capacity of up to 500,000 tons, according to its website.
In May, the firm secured a contract to manufacture and supply steel pipes to Aramco, marking another significant deal worth SR1.8 billion, according to a bourse filing.
On Oct. 30, the company announced its financial results for the second quarter and first half period ending on Sept. 30, reporting a significant quarter-on-quarter revenue increase.
In the company’s earnings release for this year’s first half ending Sept. 30, the firm’s CEO Mohammed Al-Shaheen expressed pride to have achieved ‘remarkable’ progress in both their top and bottom-line performance in the second quarter of the financial year 2023-2024, compared to the previous quarter, as they continue to focus their efforts on reinforcing their market positioning as an HSAW pipes manufacturer in the Kingdom.
“We will continue to capitalize on our numerous competitive advantages, which are fundamental pillars guiding the company towards a solid trajectory of future growth. Looking ahead, East Pipes remains focused on enhancing innovation and operational excellence in everything we do, with the ultimate goal being to deliver sustainable value and long-term returns to our shareholders,” Al-Shaheen said.
For his part, Ali Al-Makrami, the company’s vice president for commercials, said: “We continued to reinforce our long-standing and strategic relationships with key business partners during the period, which resulted in the consolidation of our position in both the local and regional markets and is considered an integral component of East Pipes’ growth and development.”
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