The orders, which are likely to be executed in the financial year 2025, will reaffirm the dominant position of Welspun Corp in the US onshore gas transmission sector.
Mar 26, 2024
Leading one-stop service provider for end-to-end pipe solutions, Welspun Corp, has bagged line pipe orders in India and the US, cumulatively valued at INR 2,039 crore, since its last disclosure on February 6, 2024.
In a stock exchange filing, the company recently said that the new orders in the US not only ascertained its business continuity till the second quarter of financial year 2025, but also reaffirmed its dominant position in the US onshore gas transmission sector.
It further said that the orders in India included one being for suppliers to the USA offshore, which reaffirmed the technical excellence of Welspun Corp and the customers’ trust on the company for executing critical projects, especially in the very challenging and demanding Gulf of Mexico.
The orders were most likely to be executed in the financial year 2025. The financial impact of this contract would be reflected from the first quarter of the financial year 2025 to the second quarter of the financial year 2027, added the company.
As per the company’s Chief Financial Officer Percy Birdy, Welspun was well on track to even exceed its financial year 2024 guidance of around INR 15,000 crore in revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of INR 1,500 crore.
Earlier in January, East Pipes Integrated Company for Industry (EPIC), an associate company of Welspun Corp, had received orders worth around INR 3,000 crore in Saudi Arabia.
As per a company statement, East Pipes Integrated Company for Industry in the Kingdom of Saudi Arabia (KSA) received cumulative orders exceeding (Saudi Riyal) SAR 1.32 billion.
The orders included supply of steel pipes to Saline Water Conversion Corporation (SWCC) with value exceeding INR 2,200 crore inclusive of value added tax for manufacturing and supply of steel pipes. The order will be completed in 39 months, Welspun Corp said in a stock exchange filing.
Another order for manufacturing and supply of steel pipes to Saudi Arabian Oil Co (Aramco) was worth over INR 339 crore inclusive value of added tax. The order for double jointing and coating of steel pipes to Aramco has a value exceeding INR 377 crore inclusive of value added tax, it added.
