Saudi Arabia's Group Five Pipe Saudi Company finalized a contract valued at over SAR 34 million ($9.06 million), including VAT, with oil giant Aramco. This agreement involves the production and supply of customized spiral-welded steel pipes for an Aramco project in the eastern region. The financial effects will begin in the third quarter of FY2024.
Saudi Arabia's Group Five Pipe Saudi Company (G5PS) has recently sealed a lucrative deal with Aramco, a leading oil and gas corporation, entailing the production and delivery of spiral-welded steel pipes. The contract, worth over SAR 34 million ($9.06 million), inclusive of VAT, is specifically tailored for one of Aramco's projects situated in the eastern region of Saudi Arabia.
G5PS, known for its expertise in pipe manufacturing, is tasked with customizing spiral-welded steel pipes, meeting the precise requirements outlined by Aramco. The agreement stipulates a timeline of two months for G5PS to fabricate and deliver these pipes to fulfill the project's demands.
The financial impact of this significant contract is expected to reflect in G5PS's financial performance, notably beginning from the third quarter of the fiscal year 2024. The deal not only solidifies G5PS's position as a prominent steel pipe manufacturer in Saudi Arabia but also underscores its capability to meet the exacting demands of major players in the oil and gas industry like Aramco.
G5PS's contract with Aramco, valued at SAR 34 million ($9.06 million), highlights its prowess in the steel pipe industry. This deal, aimed at supplying customized spiral-welded steel pipes for an Aramco project, is anticipated to impact G5PS's financials positively, commencing in the third quarter of FY2024. It signifies G5PS's competence in meeting the stringent requirements of key industry players like Aramco.