In a recent development, Saudi Arabia's leading energy giant, Saudi Aramco, has inked a new supply deal worth $54.4 million with the renowned Arabian Pipe Company. This contract, valued at 204 million Saudi riyals, solidifies the ongoing partnership between the two companies.
Under the terms of this agreement, the Arabian Pipe Company will provide crucial steel pipe and coating services to Aramco over a 16-month period. The financial implications of this deal will reflect in Arabian Pipe Company's financial statements, beginning in the first quarter of 2024 (Q1) and extending through the second quarter of 2025 (Q2).
This collaboration follows a prior agreement in June, where the two firms entered into a contract worth SAR 322 million. The Arabian Pipe Company, in particular, has made significant strides in its financial performance. For the first half of the year (H1), the company achieved a profit of 46.60 million Saudi riyals, a noteworthy turnaround from the previous year when they incurred a net loss of SAR 17.40 million in the first half, after accounting for taxes.
In contrast, Aramco's financial performance for the first seven months of 2023 reveals a 29.52% decline in net profit after factoring in taxes. As of June 30, 2023, the company reported a net profit of 232.35 billion riyals, down from 329.67 billion riyals for the same period in the previous year. This latest deal underscores the continued collaboration between Arabian Pipes and Aramco and reaffirms their commitment to supporting the Kingdom's energy sector.