Saudi Pipes reduces quarterly losses by 70% to 8 million riyals

Today, Thursday, the Saudi Steel Pipe Company (Saudi Pipes) announced preliminary financial results for the second quarter of questyear, reducing losses by 70%.

The company stated in a statement to Saudi Tadawul that his losses amounted to 8 million riyals, compared to losses of 27 million riyals in the same period last year.

This comes after the company’s revenues increased 52% to reach 88.48 million riyals.

The company attributed the decline in losses to achieving a total profit of 4.83 million riyals in the second quarter of 2021, compared to a total loss of 14.97 million riyals in the second quarter of 2020, following the increase. of sales volume, improvement of the sales mix and improvement of both efficiency and direct overhead costs.

Administrative expenses decreased to 7.99 million riyals in Q2 2021 from 10.87 million riyals in Q2 2020, mainly due to lower overheads and severance pay for employees.

Financing expenses decreased to 0.83 million riyals in the second quarter of 2021 from 2.04 million riyals in the second quarter of 2020, mainly due to lower net debt and improved sources of funding.

Against these positive changes, a net loss was recorded in the associate (International Pipes), whose share attributable to the company was equal to (1.89 million riyals in the second quarter of 2021, against a share of net of 3.58 million riyals in the second quarter of 2020.

During the first half of the year, the company’s losses decreased by 63% to reach 16.56 million riyals, compared to 44.79 million riyals in the corresponding period last year.

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