Saudi-based Al Yamamah Steel Industries Company said it has won two orders worth SR292 million ($78 million) from Hyundai Engineering and Construction Company for supply of steel towers for the construction of electricity transmission lines for a key project on the Egypt border.

The first is for supply of steel towers for the construction of 380 KV line between the new Afif BSP and Mahd BSP, while the second is for the construction of a 500 KV of electricity interconnection project between Saudi Arabia and Egypt – phase III – western region, said Al Yamamah Steel Industries in its filing to the Saudi bourse Tadawul.

The supply contract is for a one-year period. In December, Al Yamamah Steel had clinched a key contract worth SR179 million from Arabian Electrical Transmission Line Construction Company for supply of steel towers for constructing 380 kV link between Buhirah Station and Tabarjal Station. As per the deal, the Saudi group will start supplying the materials for a one-year period effective May, it added.

Meanwhile, the company reported revenues of SR326 million ($86.8 million) during the fourth quarter (Q4) of 2021, marking a year-on-year (y-o-y) decline of 31.3 per cent, said a report.

Al Rajhi Capital, a leading financial services provider in Saudi Arabia, said in its report that the results were lower than its estimate of SR437 million.

“We estimate that lower than expected volume from the construction segment resulted in a lower-than-expected revenue. Despite a fall in revenue, relative to the previous year, gross profit increased by 8.5 per cent y-o-y and was aided by an improvement in gross margins,” said Al Rajhi Capital.

“We expect better inventory management to have aided improvement in profitability. Operating profits on the other hand increased by 36.8 per cent y-o-y, at the back of higher gross profits and lower operating expenses. However, the profitability of Yamamah was lower than expected and was impacted by lower-than-expected revenue. Going forward, we expect average steel prices to fall slightly in FY2022, compared to FY2021,” it added.