Saudi Steel Pipe Wins $47.1M Aramco Order, Its Fourth Since March
The 12-month supply deal will reach the company's books in the second half of fiscal 2027, and the shares rose 4.3% on the disclosure.
Tariq Benali Tariq Benali covers business and corporate news across the UAE and MENA for Anecdoted, tracking the deals, leadership moves and regulatory shifts behind the region's companies. tariq@anecdoted.com
Saudi Steel Pipe Company has won an order worth about $47.1 million (SAR 177 million) to supply oil and gas steel pipes to Saudi Aramco. The award, disclosed in a bourse filing on Tuesday, is the fourth the pipe maker has announced from the state producer since March.
The contract runs for 12 months. Saudi Steel Pipe said the work will be reflected in its financial results in the second half of fiscal 2027.
The stock moved on the news. Shares rose 4.3% to $14.8 (SAR 55.6) by 12:00 PM AST on Tuesday on the Saudi Stock Exchange.
Four awards since March
The new order extends a run of Aramco contracts. In September, Aramco awarded Saudi Steel Pipe a $19.4 million (SAR 72.8 million) order for oil and gas steel pipes. In June, the two companies signed a separate $17.3 million (SAR 65 million) contract covering steel pipe supply. And in March, Aramco signed a $33.8 million (SAR 127 million) steel pipe supply contract with the company.
Combined, the four orders disclosed since March come to roughly $117.6 million.
Second-quarter profit slipped
The orders land against a softer earnings picture. Net profit attributable to shareholders fell to $8 million (SAR 30 million) in the second quarter of 2026, down from $189 million (SAR 71 million) a year earlier. The company attributed most of the change to land settlement compensation and an expected credit loss recorded in the quarter.
Revenue declined to $81.5 million (SAR 306 million) from $89.4 million (SAR 336 million) in the same period of 2025. Saudi Steel Pipe pointed to the mix of products sold as the main reason.
Refocusing on tubulars
In February, the company announced the voluntary liquidation of Titanium & Steel Manufacturing Co., a wholly owned subsidiary with share capital of $8.5 million (SAR 32 million). The decision was driven by a push to concentrate on core tubular and services businesses serving the oil and gas, industrial and construction sectors.
The customer behind these orders carries unusual weight: Aramco ranks first on a 2026 ranking of the 100 most valuable companies, which is why its supply contracts are read as a signal of demand rather than routine procurement. For Saudi Steel Pipe, the value of the relationship shows up in timing as much as volume. Revenue from the latest order will not reach the income statement until fiscal 2027, well after a quarter in which one-off charges, not the pipe business itself, pulled profit down. Shutting Titanium & Steel narrows the company to the segment that keeps winning the work.
