East Pipes profits jump 190% to SR6.2 mln in 1Q

East Pipes Integrated Company for Industry announced that its profits after zakat and tax jumped 190.18% to SR 6.2 million in the first quarter of 2022 compared to SR 2.1 million during the same period of 2021.

This came after East Pipes announcement on Thursday of the preliminary financial results for the period ending on 30.06.2022 (three months).

The company’s operational profits rose 33.16% to SR 11.8 million in the 1^st quarter of the current year from SR 8.9 million in the same period of the previous year.

Gross Profits of East Pipes surged 66.2% to SR 18.8 million in the first quarter of this year from SR 11.3 million a year ago, while the loss per share soared to SR 0.3 from SR 0.1.

The company’s net profit increased to SAR 6.2 million in 1Q-FY23, compared to a net profit of SAR 2.1 million in 1Q-FY22, due to the following reasons:

1. Increase in sales volume and average sales prices, which resulted in a 38% rise in revenue.
2. Decline in average cost per ton of main raw materials by 14%, which contributed to the substantial rise in gross profit of 66%.
3. Income tax expenses recorded a decline of 83%

Nevertheless, Zakat expenses increased 24%.

The company’s net profit decreased to SAR 6.2 million in 1Q-FY23, compared to a net profit of SAR 14.3 million in 4Q-FY22, due to the following reasons:

1. Decline in sales volumes of pipes by 30%.
2. Rise in average cost per ton of raw materials by 45%.
3. Increase in Expected Credit Loss provisions (trade receivables) by 73%.
4. Finance charges increased 64%.
5. Zakat and income tax expenses surged 485%.

Nevertheless

1. Average sales prices increased during the period, leading to a 6% growth in revenue.
2. General and administrative expenses decreased 23% and selling and marketing expenses decreased 40%.
3. Income tax expenses declined 120% during the period.