Riyadh – Mubasher: Arabian Pipes Company, a leading manufacturer of welded steel pipes in the region, has signed a contract with the state energy giant Saudi Arabian Oil Company (Aramco) for the manufacture and supply of steel pipes.
The agreement, valued at approximately SAR 133 million, marks a significant continuation of the partnership between the industrial manufacturer and the world’s largest integrated energy and chemicals company.
The contract is expected to bolster Arabian Pipes’ backlog and provide a steady revenue stream through the first half (H1) of 2027.
The formal signing ceremony took place on 30 June 2026. This finalization follows the initial award notification previously issued to the company.
Under the terms of the agreement, Arabian Pipes will be responsible for the manufacturing and delivery of specialized steel pipes designed to meet the rigorous technical specifications required for Saudi Aramco’s infrastructure projects.
The contract carries a total duration of nine months, during which the company will utilize its domestic manufacturing facilities to fulfill the order requirements.
This timeline underscores the company’s operational capacity to handle large-scale industrial orders within a condensed production window.
The scope of work focuses specifically on the supply chain requirements of the energy sector, highlighting APC’s role as a key local supplier in the Kingdom’s industrial ecosystem.
From a financial perspective, the management of Arabian Pipes has provided guidance on when the impact of this contract will be recognized in its financial statements.
This forward-looking projection allows shareholders and analysts to align their expectations regarding the company’s revenue recognition and cash flow cycles for the upcoming periods.
In accordance with regulatory transparency requirements mandated by the Capital Market Authority (CMA) and the Saudi Exchange (Tadawul), the company confirmed that there are no related parties involved in this transaction.
The contract was awarded based on competitive commercial terms and represents a standard business agreement within the company's primary scope of operations.
Last May, both sides penned a contracts at an estimated total value of SAR 62 million.
