East Pipes achieves significant return to profitability in FY23, driven by accelerated revenue growth

East Pipes achieves significant return to profitability in FY23, driven by accelerated revenue growth

- Substantial turnaround in profitability achieved in FY23, with solid recovery in margins

Dammam, Saudi Arabia: East Pipes Integrated Company for Industry (“East Pipes” or “the Company”, 1321 on the Saudi Exchange), the top manufacturer of Helical Submerged Arc Welded (HSAW) pipes in Saudi Arabia, today announced its financial results for the fiscal year ended 31 March 2023 (“FY23”), recording a firm recovery in net profit, amounting to SAR 100 million, supported primarily by strong growth in revenues and maintenance of healthy margins.

Financial overview for FY23

- Revenues of SAR 1,439 million increased 141% YoY (FY22: SAR 597 million) due to the dual impact of a rising trend in sales volumes and improved average sales prices, supported by a robust recovery in demand.

- EBITDA of SAR 161 million, increased 312% YoY from SAR 39 million in FY22, which is primarily driven by the solid top-line performance during the year.

- EBITDA margin of 11% in FY23 (FY22: 7%) largely benefitted from the general improvement in market conditions, which translated to a strong pipeline of key projects, as part of the government’s continued focus on infrastructure development across the Kingdom, under the Vision 2030 umbrella.

- Net profit after zakat and income tax amounted to