Volumes and prices lift East Pipes as shipping disruptions raise costs

Volumes and prices lift East Pipes: East Pipes Integrated Company for Industry reported a 36.2% y-o-y increase in net income to SAR 122.9 mn in 1Q FY 2026-27, according to a Tadawul disclosure. Revenue rose by 35.2% y-o-y to SAR 520.7 mn during the same period, as higher sales volumes and firmer average selling prices per ton carried both the top and bottom lines.

Import shipping is the pressure point. The war has pushed the company to reroute raw-material shipments away from the Strait of Hormuz and Bab al-Mandab to the ports of Jeddah and Yanbu, adding transit time — some vessels waiting up to four weeks to berth — and lifting shipping costs by an estimated 15-20%, Acting CEO Mohamed Darweesh told Al Arabiya (watch, runtime: 8:16). Customer contracts allow East Pipes to recover some of that under set conditions.

What’s next? East Pipes exports none of its production for now, with activity built around strong domestic demand from gas and water projects. But Darweesh said the company is assessing export channels and may allocate part of its capacity to foreign markets, scaling output gradually. It also plans to keep working on strategic projects, including gas-pipeline rehabilitation and maintenance and the East-West pipeline.