East Pipes: Deposit, investment income make up 3% of net profit

He noted that returns from deposits and short-term investments accounted for only around 3% of total net profit in Q3, with operating activities remaining the primary source of profitability.

Current nominal capacity stands at around 400,000 tons per year, while actual output may reach up to 500,000 tons depending on project specifications in terms of pipe diameters and thicknesses.

With the addition of nearly 100,000 tons per year from the ongoing project, nominal capacity is expected to rise to about 500,000 tons, while actual capacity could reach approximately 600,000 tons annually.

Darwish said the company expects the Master Gas System (MGS) – Phase 4 project to be executed by 2026-end or early 2027, which will play a key role in supporting demand for East Pipes’ products.

He stressed that the company’s market outlook remains clear, with demand expected to continue at its current momentum.

Acting CEO reaffirmed the company’s commitment to disclosures made on Tadawul in February 2025 concerning the establishment of a new production line for spiral submerged arc welded (SSAW) steel pipes at its plant in Dammam 2nd Industrial City.

According to the company’s announcement, implementation of the project began in February 2025 and is scheduled for completion during Q4 of FY2025–2026, with trial production during the same period for one month, followed by commercial operations in Q1 of FY2026–2027.

It also announced an expansion in its coating segment, which will double capacity from four million to eight million square meters, alongside enhancing in-house material handling capabilities. These steps are expected to support operational efficiency and strengthen readiness to execute anticipated projects.

Darwish noted that after meeting strong domestic demand, East Pipes is now prepared to selectively expand into new markets, supported by a balanced project portfolio across the water and gas business, helping sustain stable profit margins over the medium to long term.

East Pipes prioritizes meeting delivery schedules in Q4, while ramping up production and enhancing operational readiness, supporting revenue and profitability growth.

According to Argaam data, the company’s profits rose 38% to SAR 408.8 million over the first nine months ended December 2025, compared to SAR 296.5 million in the same period of 2024. Q3 profit stood at SAR 160 million.