Saudi’s East Pipes Integrated Company for Industry (East Pipes) said on Monday that it has signed a new contract with the Saline Water Conversion Corporation (SWCC) valued at 490 million Saudi riyals ($131 million), to supply and deliver steel pipes for a water transmission project.

In March 2022, the Tadawul-listed firm was awarded a similar contract by SWCC worth 497 million riyals ($267 million).

The company said in a press statement that the project would span a period of 12 months with the financial impact reflecting in East Pipes’ financial statements in 2022-2023.

East Pipes is a top manufacturer of Helical Submerged Arc Welded (HSAW) pipes in the Kingdom.

Mohammed Al Shaheen, Chief Executive Officer at East Pipes said the Saudi economy is on a sustained path of recovery, following temporary project delays caused by the pandemic.

“The current infrastructure sector and economic environment in the Kingdom is conducive to growth, and East Pipes anticipates an increase in demand resulting from a large pipeline of projects over the next 2 to 3 years, thus translating into a robust performance for the company in the medium term,” he said.

Ali Al Makrami, Vice President – Commercial at East Pipes added: “With nearly 1 billion riyals contracted for delivery over the next 12 months, we are ready to build on our track record of effective execution, to deliver on these significant new projects.”

(Writing by D Madhura; Editing by Anoop Menon)

(anoop.menon@lseg.com)