Saudi Steel Pipe Co. — Annual Report 2022

Feb 16, 2023

Saudi Steel Pipe Co. Announces its Annual Consolidated Financial Results for the Period Ending on 31-12-2022

1320 · 16/02/2023 09:10:57 · Announcement #72048 · View on Saudi Exchange

Saudi Steel Pipe Co. Announces its Annual Consolidated Financial Results for the Period Ending on 31-12-2022

Element List	Current Year	Previous Year	%Change
Sales/Revenue	747.62	373.48	100.18
Gross Profit (Loss)	107.16	27.33	292.1
Operational Profit (Loss)	69.51	-5.41	-
Net Profit (Loss) after Zakat and Tax	54.21	0.93	5,729.03
Total Comprehensive Income	55.31	2.02	2,638.12
Total Share Holders Equity (after Deducting Minority Equity)	550.52	495.2	11.17
Profit (Loss) per Share	1.07	0.02
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current year compared to the last year is	Net profit of SR 54.21 million for financial year ending 31 December 2022 (“FY 2022”) compared to a net profit of SR 0.93 million for financial year ending 31 December 2021 (“FY 2021”) is mainly due to the following reasons:

a) Gross profit increased to SR 107.16 million in FY 2022 from SR 27.33 million in FY 2021, mainly due to the increase in volume, improved efficiency and mix of products sold.

b) Share of profit in an affiliate (Global Pipe Company) amounting to SR 9.17 million in FY 2022 compared to a share of loss amounting to SR (5.23) million in FY 2021.

c) Administrative expenses decreased to SR 23.20 million in FY 2022 from SR 27.47 million in FY 2021, mainly due to the reduction of service indemnity costs.

The above listed positive results were partially offset by loss from discontinued operations amounting to SR (0.68) million in FY 2022 compared to profit amounting to SR 18.92 million in FY 2021, an increase in net zakat and tax expense to SR 9.98 million in FY 2022 from SR 0.44 million in FY 2021, an increase in selling, marketing and distribution expenses to SR 16.54 million in FY 2022 (due to higher volumes) from SR 9.65 million in FY 2021, and an increase in finance charges to SR 13.81 million in FY 2022 from SR 6.92 million in FY 2021.

EBITDA represents earnings before interest, tax, depreciation, and amortization.

SSP recorded an EBITDA of SR 112.01 million in FY 2022, compared to SR 39.61 million in FY 2021.

Due to a higher level of activity, SSP’s working capital rose in FY 2022 resulting in a negative free cash flow of SR (13.93) million compared to a positive free cash flow of SR 55.20 million in FY 2021. Consequently, Net debt increased to SR 143.97 million at the end of FY 2022 from SR 127.98 million at the end of FY 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 Without qualifying our opinion, we draw attention to note 30 to the accompanying 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 has learned during the year 2021. Reclassification of Comparison Items A comparative year amount has been reclassified to enhance and conform with the current year presentation, and there was no effect of this reclassification on the reported results for the year. Additional Information For further information, please see attached highlights. Attached Documents  

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