https://arab.news/nt2qz
RIYADH: Arabian Pipes Co.’s shares declined after the company reported that its losses deepened by 46 percent despite a wave of contract awards, as it was hit by the decline in sales during the first half of 2022.
The pipemaker shares decreased 0.13 percent to reach SR39.55 at the closing of Monday’s session.
The company’s net losses widened to SR18 million ($5 million) during the first half of the year, compared to SR12 million in the same period last year, according to a bourse filing.
This increase in losses at the Riyadh-based pipe manufacturer resulted from a 47 percent fall in sales and revenue during the period.
Between the end of 2021 and the beginning of 2022, the company was awarded several projects with a value of around SR700 million.
Arabian Pipes was awarded two contracts from Saudi oil giant Aramco to supply steel pipes worth SR368 million, however, the impact of these projects did not appear in this quarter.
Arabian Pipes' accumulated losses reached SR10.9 million during the first half, compared to about SR411 million at the end of 2021.
Its board recommended increasing capital by SR150 million through the right issues to strengthen the company's financial position, reduce loans, and develop and modernize the company's factories.