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23-05-23

Aramco inks 3 deals to secure supply of steel pipes

(MENAFN) Aramco, the Saudi Arabian oil giant, has taken steps to secure a substantial supply of steel pipes by signing three contracts valued at approximately USD493 million with leading steel pipe manufacturers in the Kingdom. East Pipes Integrated Co. has been awarded a contract worth SR1.8 billion (USD479.9 million) to manufacture and supply steel pipes to Aramco, as revealed in a bourse filing. The agreement is expected to have a financial impact spanning the third and fourth quarters of the current fiscal year, as well as the first quarter of the next fiscal year.

Another significant contract was announced by Saudi Steel Pipe Co. on Sunday, stating that it secured a contract worth SR50.2 million with Aramco for the supply of oil and gas steel pipes. The financial impact of this five-month contract is anticipated to be felt in the third quarter of the current fiscal year.

Group Five Pipe Saudi Co. also confirmed the signing of a contract with Aramco, as disclosed in a filing on Monday, without providing specific details about the agreement.

Following these announcements on Monday, the share prices of Saudi Steel Pipe, East Pipes Integrated, and Group Five Pipe Saudi experienced notable increases of 3.41 percent, 9.93 percent, and 4.86 percent, respectively, as of 12:45 p.m. Saudi time.

Established in 2010, East Pipes Integrated specializes in the production of helical submerged arc-welded pipes. The company boasts an annual production capacity of up to 500,000 tons of pipes, primarily used in water, oil, and gas projects. These contracts signify Aramco's commitment to ensuring a reliable supply of steel pipes for its operations, contributing to the ongoing development and expansion of the oil and gas industry in Saudi Arabia.
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