APC's net profit falls sharply in Jan-Sep on lower sales

Saudi Arabia's Arabian Pipes Co. reported a 65.5pct YoY decline in net profit to SAR 35.27 mln (USD 9.4 mln) in the first nine months of 2026, as lower sales volumes and higher shipping costs weighed on its performance. Revenue fell 32.6pct to SAR 496.43 mln (USD 132.4 mln).

In the third quarter, the company's net profit dropped 77.8pct YoY to SAR 6.17 mln (USD 1.65 mln), compared with SAR 27.77 mln a year earlier. Revenue decreased 39.1pct to SAR 142.03 mln (USD 37.9 mln).

Arabian Pipes attributed the weaker performance to lower sales volumes resulting from geopolitical developments and supply chain disruptions. Higher shipping costs also weighed on gross profit, which fell 47.1pct YoY in Q3 to SAR 20.88 mln (USD 5.57 mln). Changes in the sales mix further affected quarterly profitability.

For January-September, gross profit declined 50.1pct YoY to SAR 82.48 mln (USD 22 mln), while operating profit fell 61pct to SAR 47.69 mln (USD 12.7 mln).

Arabian Pipes manufactures welded steel pipes for oil and gas, structural, and commercial applications. The company operates production facilities in Riyadh and Jubail with combined annual production capacity of around 460,000 tons, including ERW and LSAW pipe mills. The company also operates threading, coating, and steel coil slitting facilities.

1 USD / 3.75 SAR