Saudi Steel Pipe Co. Announces its Annual Consolidated Financial Results for the Period Ending on 31-12-2023
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 1,335 | 748 | 78.47 | ||
| Gross Profit (Loss) | 283 | 107 | 164.49 | ||
| Operational Profit (Loss) | 225 | 70 | 221.43 | ||
| Net profit (Loss) | 217 | 54 | 301.85 | ||
| Total Comprehensive Income | 215 | 55 | 290.91 | ||
| Total Share Holders Equity (After Deducting the Minority Equity) | 722 | 551 | 31.03 | ||
| Profit (Loss) per Share | 3.42 | 1.07 | |||
| 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 year compared to the last year | Revenue increased to SAR 1,335 million in the financial year ending 31 December 2023 (“FY 2023”) from SAR 748 million in the financial year ending 31 December 2022 (“FY 2022”) as a result of the increase in volume mainly due to consolidating the post-acquisition results of Global Pipe Company (“GPC”) after SSP increased its total ownership interest in it to 57.27%. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | Net profit of SAR 217 million for FY 2023 compared to a net profit of SAR 54 million for FY 2022 is mainly due to the following reasons:
a) Gross profit increased to SAR 283 million in FY 2023 from SAR 107 million in FY 2022, as a result of the increase in volume mainly due to consolidating the post-acquisition results of GPC, and the improved mix of products sold.
b) Recognition of a bargain purchase gain amounting to SAR 40 million in FY 2023 as a result of acquiring an additional 22.27% interest in GPC which increased SSP total ownership interest to 57.27%.
c) Other income increased to SAR 10 million in FY 2023 from SAR 3 million in FY 2022, mainly due to consolidating the post-acquisition results of GPC.
d) Zakat and tax expense decreased to SAR 7 million in FY 2023 from SAR 10 million in FY 2022, due to consolidating the post-acquisition results of GPC which include deferred tax reversal in the period.
The above listed positive changes were partially offset by an increase in finance charges to SAR 35 million in FY 2023 from SAR 14 million in FY 2022 due to consolidating the post-acquisition results of GPC, an increase in administrative expenses to SAR 38 million in FY 2023 from SAR 23 million in FY 2022 mainly due to consolidating the post-acquisition results of GPC, an increase in selling, marketing and distribution expenses to SAR 29 million in FY 2023 from SAR 17 million in FY 2022 mainly due to consolidating the post-acquisition results of GPC, the recording of a loss on de-recognition of previously held equity interest in an associate amounting to SAR 10 million in FY 2023 and a decrease in the share of profit in an associate to SAR 3 million in FY 2023 from SAR 9 million in FY 2022.
EBITDA represents earnings before interest, tax, depreciation, and amortization.
SSP recorded an EBITDA of SAR 282 million in FY 2023, compared to SAR 112 million in FY 2022.
As a result of improved profitability and efficient working capital management, SSP recorded a positive free cash flow of SAR 308 million in 2023 compared to negative free cash flow of SAR (14) million in 2022. Net Debt increased to SAR 319 million in FY 2023 from SAR 144 million in FY 2022 as a result of consolidating the financial position of GPC. |
| 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 31 to the accompanying consolidated financial statements with respect to certain electronic title deeds related to the Group’s land plots which became inactive due to cancellation by a Court Order, which management became aware of during 2021. Our opinion 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 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.
See attached document for the highlights. |
| Attached Documents |  |
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