Saudi Arabia’s East Pipes Integrated Company for Industry has agreed to cancel a contract worth SAR 153 million ($40.8 million) to supply steel pipes to Saudi Arabian Oil Co (Aramco).
The cancellation of the contract was done at Aramco’s request, according to a disclosure with Tadawul, Saudi Arabia’s stock exchange. East Pipes did not specify the reason behind Aramco’s request.
East Pipes said in the notice that the decision would not have a financial impact on the company’s performance, as it had not been factored into its production schedule for the current fiscal year.
“The company agreed to stop and cancel the contract because there is no financial impact that would affect the company’s performance,” Est Pipes said in the statement.
Moreover, East Pipes’ added that the procurement of raw materials entailed under the supply contract was not carried out.
The original deal had been signed on November 30, 2023.
Aramco published its financial results for 2023 earlier this month, reporting a net income of $121.3 billion, the second-highest in the company’s history. The company’s net profit dropped by 24.7% to $121.2 from the $161.1 billion Aramco reported in 2022, with oil revenues making up 62% of total state revenues in 2023.
Earlier this month, Saudi Arabia announced it had completed the transfer of 8% of Aramco’s total issued shares from the State’s ownership to companies fully owned by the country’s Public Investment Fund (PIF).
