Updated March 22nd, 2024 at 20:54 IST

Welspun Corp's unit and Saudi Aramco scrap $41 mln steel pipe contract

Indian steel pipes maker Welspun Corp said on Friday its associate firm, East Pipes Integrated Company for Industry, and Saudi Arabia's oil giant Aramco have mutually

Reported by: Thomson Reuters
Despite rising bond yields, Morgan Stanley notes that cash and debt remain more attractive funding options than equity. | Image:Pixabay
Advertisement

Scrapped deal: Steel pipes maker Welspun Corp said on Friday its associate firm, East Pipes Integrated Company for Industry, and Saudi Arabia's oil giant Aramco have mutually terminated a contract worth 3.39 billion rupees ($40.6 million).

Welspun's unit had bagged the contract for manufacturing and supply of steel pipes for a duration of eight months in January.

Advertisement

The deal represented 3% of the total value of contracts announced by Aramco for Welspun in the financial year 2023-24, which amounts to about 98 billion rupees.

Welspun did not disclose the reason for the cancellation of the contract, but said it would not affect its operating plans.

Advertisement

The company had in February posted a more than twelve-fold jump in its third-quarter consolidated profit, including earnings from its units, helped by strong demand for its pipes across sectors.

With Reuters Inputs

Advertisement

Published March 22nd, 2024 at 20:49 IST