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Saudi Steel Pipe Company announces its interim Financial results for the period ending on 30-6-2024 (Six Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 472 | 361 | 30.747 | 515 | -8.349 |
| Gross Profit (Loss) | 105 | 93 | 12.903 | 107 | -1.869 |
| Operational Profit (Loss) | 87 | 74 | 17.567 | 90 | -3.333 |
| Net profit (Loss) | 72 | 87 | -17.241 | 76 | -5.263 |
| Total Comprehensive Income | 72 | 87 | -17.241 | 76 | -5.263 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 987 | 528 | 86.931 |
| Gross Profit (Loss) | 212 | 116 | 82.758 |
| Operational Profit (Loss) | 177 | 81 | 118.518 |
| Net profit (Loss) | 148 | 94 | 57.446 |
| Total Comprehensive Income | 148 | 94 | 57.446 |
| Total Shareholders Equity (after Deducting Minority Equity) | 792 | 641 | 23.556 |
| Profit (Loss) per Share | 2.1 | 1.8 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | - | - | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | Revenue increased to SAR 472 million for the second quarter of financial year 2024 (“Q2 2024”) from SAR 361 million for the second quarter of financial year 2023 (“Q2 2023”) as a result of the increase in volume mainly due to consolidating the results of Global Pipe Company (“GPC”) for the full quarter in Q2 2024, compared to consolidating the results of GPC for a portion of the quarter in Q2 2023 (as consolidation started on 17/5/2023). |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Net profit of SAR 72 million for Q2 2024 compared to a net profit of SAR 87 million for Q2 2023 is mainly due to: a) Recognition of a bargain purchase gain amounting to SAR 40 million in Q2 2023 as a result of acquiring an additional 22.27% interest in GPC. The above effect was partially offset by: b) An increase in gross profit to SAR 105 million in Q2 2024 from SAR 93 million in Q2 2023 as a result of the increase in volume mainly due to consolidating the results of GPC for the full quarter in Q2 2024 compared to consolidating its results from 17/5/2023 in Q2 2023. c) Recording a loss on de-recognition of previously held interest in an affiliate amounting to SAR 10 million in Q2 2023. The EBITDA represents earnings before interest, tax, depreciation, and amortization. SSP recorded an EBITDA of SAR 105 million in Q2 2024, compared to SAR 88 million in Q2 2023. During Q2 2024 SSP recorded a positive free cash flow of SAR 17 million, compared to SAR 45 million in Q2 2023. As at the end of Q2 2024, Net debt amounted to SAR 333 million, compared to SAR 540 million at the end of Q2 2023, as a result of the improvement in profitability and effective cash flow management. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | Revenue decreased to SAR 472 million for Q2 2024 from SAR 515 million for the first quarter of financial year 2024 (“Q1 2024”), mainly as a result of the decrease in volume. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | Net profit of SAR 72 million in Q2 2024 compared to net profit of SAR 76 million for Q1 2024 is mainly due to the following reasons: a) Net zakat and tax expense increased to SAR 7 million in Q2 2024 from SAR 4 million in Q1 2024. b) Gross profit decreased to SAR 105 million in Q2 2024 from SAR 107 million in Q1 2024, due to a decrease in volume.
The EBITDA represents earnings before interest, tax, depreciation, and amortization. SSP recorded a positive EBITDA of SAR 105 million in Q2 2024, compared to SAR 106 million in Q1 2024. SSP recorded a positive free cash flow of SAR 17 million in Q2 2024 compared to a negative free cash flow of SAR (33) million in Q1 2024. Consequently, net debt decreased to SAR 333 million at the end of Q2 2024 from SAR 350 million at the end of Q1 2024. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | Revenue increased to SAR 987 million for the first six months of financial year 2024 (“6M 2024”) from SAR 528 million for the first six months of financial year 2023 (“6M 2023”) as a result of the increase in volume mainly due to consolidating the results of GPC for the full period in 6M 2024 compared to consolidating its results from 17/5/2023 in 6M 2023. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Net profit of SAR 148 million for the 6M 2024 compared to a net profit of SAR 94 million for the 6M 2023 is mainly due to the following reasons: a) Gross profit increased to SAR 212 million in 6M 2024 from SAR 116 million in 6M 2023, mainly as a result of the increase in volume driven by consolidating the results of GPC for the full period in 6M 2024 compared to consolidating its results from 17/5/2023 in 6M 2023, and to the improved efficiency and mix of products sold. b) Recording a loss on de-recognition of previously held interest in an affiliate amounting to SAR 10 million in 6M 2023. The above listed positive effects were partially offset by: c) Recognition of a bargain purchase gain amounting to SAR 40 million in 6M 2023 as a result of acquiring an additional 22.27% interest in GPC. d) An increase of administrative expenses to SAR 24 million in 6M 2024 from SAR 15 million in 6M 2023 that resulted mainly from consolidating the results of GPC for the full period in 6M 2024. The EBITDA represents earnings before interest, tax, depreciation, and amortization. SSP recorded a positive EBITDA of SAR 211 million in 6M 2024, compared to SAR 104 million in 6M 2023. Due to the increase in working capital as a result of higher activities, and the higher capital expenditure, SSP recorded a negative free cash flow of SAR (16) million in 6M 2024 compared to a positive free cash flow of SAR 83 million in 6M 2023. As at the end of 6M 2024, Net debt amounted to SAR 333 million, compared to SAR 540 million at the end of 6M 2023, as a result of the improvement in profitability and effective cash flow management. |
| Statement of the type of external auditor's report | Notice |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | We draw attention to note 18 to the accompanying interim condensed consolidated financial statements which states that the electronic title deeds related to certain plots of land recorded by the Group became inactive due to a cancellation by the Court order, which management became aware of during the year 2021. Our conclusion is not modified with respect to this matter. |
| Reclassification of Comparison Items | - |
| Additional Information | See attached document for the highlights. |
| Attached Documents |  |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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