Saudi Steel Pipe Co. announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 361.38 | 211.82 | 70.61 | 166.89 | 116.54 |
| Gross Profit (Loss) | 92.58 | 27.28 | 239.37 | 23.86 | 288.01 |
| Operational Profit (Loss) | 74.25 | 18.55 | 300.27 | 6.76 | 998.37 |
| Net Profit (Loss) after Zakat and Tax | 87.45 | 11.74 | 644.89 | 6.37 | 1,272.84 |
| Total Comprehensive Income | 87.45 | 11.74 | 644.89 | 6.37 | 1,272.84 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 528.27 | 395.9 | 33.44 |
| Gross Profit (Loss) | 116.44 | 56.23 | 107.08 |
| Operational Profit (Loss) | 81.01 | 38.53 | 110.25 |
| Net Profit (Loss) after Zakat and Tax | 93.82 | 26.27 | 257.14 |
| Total Comprehensive Income | 93.82 | 26.27 | 257.14 |
| Total Share Holders Equity (after Deducting Minority Equity) | 641.45 | 521.48 | 23 |
| Profit (Loss) per Share | 1.8 | 0.52 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 0 | 510 | 0 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| 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 SR 87.45 million for the second quarter of financial year 2023 (“Q2 2023”) compared to a net profit of SR 11.74 million for the second quarter of financial year 2022 (“Q2 2022”) is due to the following main reasons:
a) Gross profit increased to SR 92.58 million in Q2 2023 from SR 27.28 million in Q2 2022, mainly as a result of the increase in volume partially due to Global Pipe Company acquisition, improved efficiency and mix of products sold.
b) Recognition of a bargain purchase gain amounting to SR 40.33 million in Q2 2023 as a result of acquiring an additional 22.27% interest in Global Pipe Company which increased SSP total ownership interest to 57.27%.
The above listed positive changes were partially offset by loss on de-recognition of previously held interest in an affiliate amounting to SR 9.68 million in Q2 2023, an increase in net zakat and tax expense to SR 9.17 million in Q2 2023 from SR 2.66 million in Q2 2022, an increase in finance charges to SR 7.57 million in Q2 2023 from SR 3.17 million in Q2 2022 mainly due consolidating the post-acquisition results of Global Pipe Company, an increase in administrative expenses to SR 8.86 million in Q2 2023 from SR 5.57 million in Q2 2022 mainly due to consolidating the post-acquisition results of Global Pipe Company, and trade receivables bad debt provision amounting to SR (1.62) million in Q2 2023 compared to a reversal amounting to SR 1.13 million in Q2 2022.
The EBITDA represents earnings before interest, tax, depreciation, and amortization.
SSP recorded an EBITDA of SR 87.50 million in Q2 2023, compared to SR 29.16 million in Q2 2022.
SSP recorded a positive free cash flow of SR 44.97 million in Q2 2023 compared to SR 89.02 million in Q2 2022. Net debt increased to SR 540.34 million at the end of Q2 2023 from SR 102.06 million at the end of Q2 2022, as a result of consolidating the financial position of Global Pipe Company. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | Net profit of SR 87.45 million in Q2 2023 compared to net profit of SR 6.37 million for the first quarter of financial year 2023 (“Q1 2023”) is due to the following main reasons:
a) Gross profit increased to SR 92.58 million in Q2 2023 from SR 23.86 million in Q1 2023, mainly as a result of the increase in volume partially due to Global Pipe Company acquisition, improved efficiency and mix of products sold.
b) Recognition of a bargain purchase gain amounting to SR 40.33 million in Q2 2023 as a result of acquiring an additional 22.27% interest in Global Pipe Company which increased SSP total ownership interest to 57.27%.
The above listed positive changes were partially offset by loss on de-recognition of previously held interest in an affiliate amounting to SR 9.68 million in Q2 2023, an increase in net zakat and tax expense to SR 9.17 million in Q2 2023 from SR 1.32 million in Q1 2023, an increase in finance charges to SR 7.57 million in Q2 2023 from SR 2.73 million in Q1 2023 mainly due to consolidating the post-acquisition results of Global Pipe Company, and a share of loss in an affiliate amounting to SR (0.62) million in Q2 2023 compared to a share of profit amounting to SR 3.74 million in Q1 2023.
The EBITDA represents earnings before interest, tax, depreciation, and amortization.
SSP recorded a positive EBITDA of SR 87.50 million in Q2 2023, compared to SR 16.59 million in Q1 2023.
SSP recorded a positive free cash flow of SR 44.97 million in Q2 2023 compared to SR 37.76 million in Q1 2023. Net debt increased to SR 540.34 million at the end of Q2 2023 from SR 106.40 million at the end of Q1 2023, as a result of consolidating the financial position of Global Pipe Company |
| 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 SR 93.82 million for the first half of financial year 2023 (“H1 2023”) compared to a net profit of SR 26.27 million for the first half of financial year 2022 (“H1 2022”) is due to the following main reasons:
a) Gross profit increased to SR 116.44 million in H1 2023 from SR 56.23 million in H1 2022, mainly as a result of the increase in volume partially due to Global Pipe Company acquisition, improved efficiency and mix of products sold.
b) Recognition of a bargain purchase gain amounting to SR 40.33 million in H1 2023 as a result of acquiring an additional 22.27% interest in Global Pipe Company which increased SSP total ownership interest to 57.27%.
The above listed positive changes were partially offset by loss on de-recognition of previously held interest in an affiliate amounting to SR 9.68 million in H1 2023, increase in selling, marketing and distribution expenses to SR 15.67 million in H1 2023 from SR 8.80 million in H1 2022 mainly due to the increase in volume, an increase in net zakat and tax expense to SR 10.49 million in H1 2023 from SR 5.26 million in H1 2022, trade receivables bad debt provision amounting to SR (4.11) million in H1 2023 compared to a reversal amounting to SR 0.69 million in H1 2022, and an increase in finance charges to SR 10.30 million in H1 2023 from SR 6.01 million in H1 2022 mainly due to consolidating the post-acquisition results of Global Pipe Company.
The EBITDA represents earnings before interest, tax, depreciation, and amortization.
SSP recorded a positive EBITDA of SR 104.09 million in H1 2023, compared to SR 59.83 million in H1 2022.
SSP recorded a positive free cash flow of SR 82.73 million in H1 2023 compared to SR 27.78 million in H1 2022. Net debt increased to SR 540.34 million at the end of H1 2023 from SR 102.06 million at the end of H1 2022, as a result of consolidating the financial position of Global Pipe Company |
| Statement of the type of external auditor's report | Emphasis of Matter |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | We draw attention to note 19 to the accompanying interim condensed consolidated financial statements with respect to certain electronic title deeds related to the Group’s land plots which became inactive due to cancellation by the Court Order, which management has learned during 2021. Our conclusion is not modified in respect of this matter. |
| Reclassification of Comparison Items | - |
| Additional Information | As previously announced on 18/5/2023 (corresponding to 28/10/1444), pursuant to the acquisition transaction closed on 17/5/2023, SSP acquired an additional 22.27% interest in Global Pipe Company (“GPC”), and now holds a total 57.27% participation in GPC. Accordingly, SSP started consolidating GPC’s financial position and results of operations from 17/5/2023. The preliminary purchase price allocation was carried out with the assistance of a third-party expert. In accordance with IFRS 3, SSP used provisional amounts for various components of the business combination as of the acquisition date which resulted in the recognition of a gain on bargain purchase amounting to SR 40.3 million and a loss on de-recognition of the previously held interest in GPC amounting to SR 9.7. SSP will continue reviewing the allocation and make any necessary adjustments during the twelve months (measurement period) following the acquisition date.
See attached document for the highlights. |
| Attached Documents |  |
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