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

Welspun

22/03/2024 15:07

BENGALURU, March 22 (Reuters) - Indian steel pipes maker
Welspun Corp  WGSR.NS  said on Friday its associate firm, East
Pipes Integrated Company for Industry, and Saudi Arabia's oil
giant Aramco  2222.SE  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.
    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.
    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.
    

($1 = 83.4790 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru; Editing by Shilpi
Majumdar)
 ((Manvi.Pant@thomsonreuters.com; +918447554364))