Saudi Steel Pipe Co. announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 317.47 | 204.78 | 55.03 | 361.38 | -12.15 |
| Gross Profit (Loss) | 63.54 | 30.36 | 109.29 | 92.58 | -31.37 |
| Operational Profit (Loss) | 52.55 | 21 | 150.24 | 74.25 | -29.23 |
| Net Profit (Loss) after Zakat and Tax | 37.92 | 16.79 | 125.85 | 87.45 | -56.64 |
| Total Comprehensive Income | 37.92 | 16.79 | 125.85 | 87.45 | -56.64 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 845.74 | 600.68 | 40.8 |
| Gross Profit (Loss) | 179.98 | 86.59 | 107.85 |
| Operational Profit (Loss) | 133.56 | 59.53 | 124.36 |
| Net Profit (Loss) after Zakat and Tax | 131.74 | 43.07 | 205.87 |
| Total Comprehensive Income | 131.74 | 43.07 | 205.87 |
| Total Share Holders Equity (after Deducting Minority Equity) | 666.41 | 538.27 | 23.8 |
| Profit (Loss) per Share | 2.29 | 0.85 | |
| 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 37.92 million for the third quarter of financial year 2023 (“Q3 2023”) compared to a net profit of SR 16.79 million for the third quarter of financial year 2022 (“Q3 2022”) is due to the following main reasons:
a) Gross profit increased to SR 63.54 million in Q3 2023 from SR 30.36 million in Q3 2022, as a result of the increase in volume mainly due to consolidating the results of Global Pipe Company (“GPC”), and improved mix of products sold.
b) Other income increased to SR 5.21 million in Q3 2023 from SR 0.67 million in Q3 2022
c) Reversal of provision amounting to SR 1.58 million in Q3 2023 compared to a trade receivable bad debt provision amounting to SR (0.17) million in Q3 2022.
The above listed positive changes were partially offset by an increase in finance charges to SR 14.46 million in Q3 2023 from SR 3.93 million in Q3 2022, an increase in administrative expenses to SR 11.87 million in Q3 2023 from SR 5.58 million in Q3 2022, and an increase in selling, marketing and distribution expenses to SR 5.91 million in Q3 2023 from SR 4.27 million in Q3 2022. The aforementioned increase in expenses were mainly due to consolidating the results of GPC.
The EBITDA represents earnings before interest, tax, depreciation, and amortization.
SSP recorded an EBITDA of SR 69.43 million in Q3 2023, compared to SR 31.85 million in Q3 2022.
SSP recorded a negative free cash flow of SR (3.37) million in Q3 2023 compared to SR (112.39) million in Q3 2022. Net debt increased to SR 548.75 million at the end of Q3 2023 from SR 213.79 million at the end of Q3 2022, as a result of consolidating the financial position of GPC. |
| 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 37.92 million in Q3 2023 compared to net profit of SR 87.45 million for the second quarter of financial year 2023 (“Q2 2023”) is due to the following main reasons:
a) 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 GPC which increased SSP total ownership interest to 57.27%.
b) Gross profit decreased to SR 63.54 million in Q3 2023 from SR 92.58 million in Q2 2023, mainly as a result of the decrease in volume.
c) Finance charges increased to SR 14.46 million in Q3 2023 from SR 7.57 million in Q2 2023 mainly due to consolidating the results of GPC.
The above listed negative changes were partially offset by recording a loss on de-recognition of previously held interest in an affiliate amounting to SR 9.68 million in Q2 2023, a decrease in zakat and tax expense to SR 1.53 million in Q3 2023 from SR 9.17 million in Q2 2023, other income amounting to SR 5.21 million in Q3 2023 compared to other expenses amounting to SR (0.69) million in Q2 2023, and a reversal of provision amounting to SR 1.58 million in Q3 2023 compared to a trade receivable bad debt provision amounting to SR (1.62) million in Q2 2023.
SSP recorded a positive EBITDA of SR 69.43 million in Q3 2023, compared to SR 87.50 million in Q2 2023.
Due to the increase in working capital, SSP recorded a negative free cash flow of SR (3.37) million in Q3 2023 compared to a positive free cash flow of SR 44.97 million in Q2 2023. Net debt increased to SR 548.75 million at the end of Q3 2023 from SR 540.34 million at the end of Q2 2023. |
| 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 131.74 million for the nine months period of financial year 2023 (“9M 2023”) compared to a net profit of SR 43.07 million for the nine months period of financial year 2022 (“9M 2022”) is due to the following main reasons:
a) Gross profit increased to SR 179.98 million in 9M 2023 from SR 86.59 million in 9M 2022, as a result of the increase in volume mainly due to consolidating the results of GPC after SSP increased its total ownership interest in GPC to 57.27%, and improved mix of products sold.
b) Recognition of a bargain purchase gain amounting to SR 40.33 million in 9M 2023 as a result of acquiring an additional 22.27% interest in GPC which increased SSP total ownership interest to 57.27%.
The above listed positive changes were partially offset by an increase in finance charges to SR 24.75 million in 9M 2023 from SR 9.93 million in 9M 2022 mainly due to consolidating the post-acquisition results of GPC, an increase in administrative expenses to SR 27.07 million in 9M 2023 from SR 16.75 million in 9M 2022 mainly due to consolidating the post-acquisition results of GPC, recording a loss on de-recognition of previously held interest in an affiliate amounting to SR 9.68 million in 9M 2023, an increase in selling, marketing and distribution expenses to SR 21.57 million in 9M 2023 from SR 13.08 million in 9M 2022 mainly due to consolidating the post-acquisition results of GPC, and an increase in zakat and tax expense to SR 12.03 million in 9M 2023 from SR 8.41 million in 9M 2022.
SSP recorded a positive EBITDA of SR 173.51 million in 9M 2023, compared to SR 91.68 million in 9M 2022.
As a result of improved profitability and efficient working capital management, SSP recorded a positive free cash flow of SR 79.36 million in 9M 2023 compared to a negative free cash flow of SR (84.61) million in 9M 2022. Net debt increased to SR 548.75 million at the end of 9M 2023 from SR 213.79 million at the end of 9M 2022, as a result of consolidating the financial position of GPC. |
| 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 became aware of 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 GPC (“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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