East Pipes’ profit falls in H1 FY27 on lower sales volumes

Saudi steel pipe producer East Pipes Integrated Company for Industry reported a 19.3pct YoY decline in net profit to SAR 200.9 mln (USD 53.6 mln) for the six months ended September 30, 2026, as lower sales volumes and higher freight and insurance costs weighed on results.

The company’s revenue fell 9.5pct YoY to SAR 865.5 mln (USD 231 mln).

The company attributed the weaker performance to delays in raw material deliveries due to geopolitical conditions, which reduced production and sales volumes. Higher freight and insurance costs for raw materials also affected profitability.

In the second quarter of fiscal 2026-27, revenue dropped 39.6pct YoY to SAR 344.8 mln (USD 92 mln), while net profit fell 50.8pct to SAR 78 mln (USD 21 mln).

Founded in 2010, East Pipes operates a helical spiral arc welded (HSAW) pipe plant in Dammam with an annual capacity of 500,000 tons. The facility can produce pipes up to 18.2 meters long, with wall thicknesses of 6-25.4 mm, diameters of 20-100 inches, and grades up to API X80.

1 USD / 3.75 SAR