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East Pipes Integrated Company, the associate company of Welspun Corp, has signed a contract with the Saline Water Conversion Corporation valued at 490 million Saudi Riyal.
The water transmission systems are managed by SWCC, which is responsible for developing and operating power desalination plants to supply various regions in the Kingdom with desalinated water. This is in line with the government's programme to expand the country's water pipeline infrastructure through investment from the private sector.
Mohammed Al Shaheen, chief executive officer at East Pipes said, The domestic economy is emerging from the pandemic stronger than ever, and is on a sustained path of recovery, following temporary project delays. The two major new contracts secured with SWCC this year, are testament to that, and we look forward to continue to collaborate, to achieve the Kingdom's infrastructure goals in line with Vision 2030.
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, Shaheen added.
Ali Al Makrami, vice president of commercial at East Pipes said, The new project win is a clear indication of the trust and confidence instilled in East Pipes by our partner in success, SWCC. With nearly SAR 1 billion 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.
East Pipes Integrated Company for Industry (East Pipes) is one of the leading manufacturers of Helical Spiral Arc Welded (HSAW) pipes in Saudi Arabia, which are used in critical infrastructure sectors, predominantly water and oil & gas applications.
Welspun Corp is a one-stop service provider offering end-to-end pipe solutions. The company's consolidated net profit declined 22.9% to Rs 236.14 crore despite of 3.5% rise in revenue from operations to Rs 1986.56 crore in Q4 FY22 over Q4 FY21.
Shares of Welspun Corp were up 0.61% at Rs 231.30 on the BSE.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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