Saudi Steel Pipes signs new contracts with Aramco

Dubai: Saudi Steel Pipes Co. said on Sunday it has signed contracts in excess of 215 million Saudi riyals (Dh209.4 million) with Saudi Arabian Oil Co., or Aramco, to supply welded steel pipes for lining oil wells and gas pipelines.

In a statement to the Saudi bourse website, SSP said the pipes will be produced by the first quarter of 2013 at its Damman factory. Raw materials would be supplied by Saudi Basic Industries Corp. or Sabic, the company added.

The pipe maker said last month its second quarter net profit slumped by 42 per cent as higher raw material prices weighed on margins.

SSP shares are trading +0.4 per cent at SAR24.40 on the Saudi stock exchange in a negative overall market.