Saudi Steel Pipe Co. announces its Interim Financial Results for the Period Ending on 2022-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 204.78 | 83.32 | 145.78 | 211.82 | -3.32 |
| Gross Profit (Loss) | 30.36 | 7.58 | 300.53 | 27.28 | 11.29 |
| Operational Profit (Loss) | 21 | -0.69 | - | 18.55 | 13.21 |
| Net Profit (Loss) after Zakat and Tax | 16.79 | 15.92 | 5.46 | 11.74 | 43.02 |
| Total Comprehensive Income | 16.79 | 15.92 | 5.46 | 11.74 | 43.02 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 600.68 | 263.87 | 127.64 |
| Gross Profit (Loss) | 86.59 | 14.76 | 486.65 |
| Operational Profit (Loss) | 59.53 | -11.41 | - |
| Net Profit (Loss) after Zakat and Tax | 43.07 | -0.64 | - |
| Total Comprehensive Income | 43.07 | -0.64 | - |
| Total Share Holders Equity (after Deducting Minority Equity) | 538.27 | 492.55 | 9.28 |
| Profit (Loss) per Share | 0.85 | -0.01 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 17.31 | 510 | 3.39 | |
| 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 16.79 million for the third quarter of financial year 2022 (“Q3 2022”) compared to a net profit of SR 15.92 million for the third quarter of financial year 2021 (“Q3 2021”) is due to the following main reasons:
a) Gross profit increased to SR 30.36 million in Q3 2022 from SR 7.58 million in Q3 2021, mainly due to the increase in volume, improved efficiency and mix of sold products.
b) Share of profit in an affiliate (Global Pipe Company) increased to SR 2.82 million in Q3 2022 from SR 0.13 million in Q3 2021.
c) Administrative expenses decreased to SR 5.58 million in Q3 2022 from SR 6.35 million in Q3 2021, mainly due to the reduction of service indemnity costs.
The above listed positive changes were partially offset by a decrease in profit from discontinued operations to SR 0.04 million in Q3 2022 from SR 19.21 million in Q3 2021, an increase in net zakat and tax expense to SR 3.15 million in Q3 2022 from SR 0.54 million in Q3 2021, an increase in selling, marketing and distribution expenses to SR 4.27 million in Q3 2022 (due to higher volume) from SR 2.26 million in Q3 2021, and an increase in finance charges to SR 3.93 million in Q3 2022 from SR 2.19 million in Q3 2021.
EBITDA represents earnings before interest, tax, depreciation, and amortization.
SSP recorded an EBITDA of SR 31.85 million in Q3 2022, compared to SR 10.60 million in Q3 2021.
Due to a higher level of activity, SSP’s working capital rose in Q3 2022 resulting in a negative free cash flow of SR (112.39) million compared to a positive free cash flow of SR 14.38 million in Q3 2021. Consequently, Net debt increased to SR 213.79 million at the end of Q3 2022 from SR 138.61 million at the end of Q3 2021 |
| 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 16.79 million for Q3 2022 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 30.36 million in Q3 2022 from SR 27.28 million in Q2 2022, mainly as a result of improved efficiency and mix of sold products.
b) Share of profit in an affiliate (Global Pipe Company) amounting to SR 2.82 million in Q3 2022 compared to a share of loss amounting to SR (0.29) million in Q2 2022.
The above listed positive changes were partially offset by trade receivables bad debt provision charge of SR (0.17) million in Q3 2022 compared to a reversal of SR 1.13 million in Q2 2022.
EBITDA represents earnings before interest, tax, depreciation, and amortization.
SSP recorded an EBITDA of SR 31.85 million in Q3 2022, compared to SR 29.16 million in Q2 2022.
Due to the built up in working capital, SSP recorded a negative free cash flow of SR (112.39) million in Q3 2022 compared to a positive free cash flow of SR 89.02 million in Q2 2022. Consequently, Net debt increased to SR 213.79 million at the end of Q3 2022 from SR 102.06 million at the end of Q2 2022. |
| 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 43.07 million for the first nine months of financial year 2022 (“9M 2022”) compared to a net loss of SR (0.64) million for the first nine months of financial year 2021 (“9M 2021”) is due to the following main reasons:
a) Gross profit increased to SR 86.59 million in 9M 2022 from SR 14.76 million in 9M 2021, mainly due to the increase in volume, improved efficiency and mix of sold products.
b) Share of profit in an affiliate (Global Pipe Company) amounting to SR 2.42 million in 9M 2022 compared to a share of loss amounting to SR (4.75) million in 9M 2021.
c) Administrative expenses decreased to SR 16.75 million in 9M 2022 from SR 21.43 million in 9M 2021, mainly due to the reduction of service indemnity costs.
The above listed positive changes were partially offset by loss from discontinued operations amounting to SR (0.54) million in 9M 2022 compared to profit amounting to SR 19.19 million in 9M 2021, net zakat and tax expense amounting to SR (8.41) million in 9M 2022 compared to a net benefit amounting to SR 1.02 million in 9M 2021, an increase in selling, marketing and distribution expenses to SR 13.08 million in 9M 2022 (due to higher volume) from SR 7.24 million in 9M 2021, and an increase in financial charges to SR 9.93 million in 9M 2022 from SR 4.68 million in 9M 2021.
EBITDA represents earnings before interest, tax, depreciation, and amortization.
SSP recorded a positive EBITDA of SR 91.68 million in 9M 2022, compared to SR 22.10 million in 9M 2021.
Due to a higher level of activity, SSP’s working capital rose in 9M 2022 resulting in a negative free cash flow of SR (84.62) million compared to a positive free cash flow of SR 72.46 million in 9M 2021. Consequently, Net debt increased to SR 213.79 million at the end of 9M 2022 from SR 138.61 million at the end of 9M 2021. |
| 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 17 to the accompanying interim condensed consolidated financial statements with respect to certain plots of land owned by the Group became inactive due to cancellation by a court order. Our conclusion is not qualified in respect of this matter. |
| Reclassification of Comparison Items | A comparative period amount has been reclassified to conform with the current period presentation, and there was no effect of this reclassification on the reported results for the period. |
| Additional Information | For further information, please see attached highlights. |
| Attached Documents |  |
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