East Pipes reports robust improvement in profitability in 3Q-FY23, enabled by a strong pickup in revenues

East Pipes reports robust improvement in profitability in 3Q-FY23, enabled by a strong pickup in revenues

- Significant and highly visible pipeline of projects, as part of the Kingdom’s2030 transformative plan, is conducive to sustainable growth

Dammam, Saudi Arabi: 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 third quarter and nine-month period ended 31 December 2022 (“3Q and 9M-FY23”), reporting a remarkable improvement in profit, driven by a solid top-line performance, which has outweighed the impact of rising financial charges.

Financial highlights for 3Q-FY23 and 9M-FY23

- Revenues of SAR 487 million increased 61% QoQ and 266% YoY (2Q-FY23: SAR 303 million; 3Q-FY22: SAR 133 million). This was due to a large pickup in both sales volumes and average sales prices, supported by a revival in demand, on the back of enhanced sentiment in the market. For 9M-FY23, revenues amounted to SAR 996 million, increasing 147% YoY.

- EBITDA amounted to SAR 67 million in 3Q-FY23 (2Q-FY23: 20 million; 3Q-FY22: EBITDA loss of SAR 8 million), which is essentially attributed to the improvement in the top-line performance. For 9M-FY23, EBITDA amounted to SAR 104 million, compared to SAR 18 million in 9M-FY22.