Under the terms of the agreement, Arabian Pipes will provide steel pipe and coating services to Aramco for a period of 16 months.
The financial impact of this contract will be reflected in Arabian Pipes' financial results starting from the first quarter of 2024 (Q1) and continuing until the second quarter of 2025 (Q2).
It is also worth noting that these two listed companies had previously signed another SAR 322 million deal in June.
In the first half of the year (H1), Arabian Pipes bounced back to post a profit of SAR 46.60 million. This is a significant improvement from the previous year, when the company posted a net loss of SAR 17.40 million in H1, after zakat and taxes.
However, Aramco's financial performance for the first seven months of 2023 showed a 29.52% decline in net profit after accounting for zakat and taxes, with figures as of 30 June 2023 recorded at SAR 232.35 billion, compared to SAR 329.67 billion for the same period.