Tenaris acquires 48% stake in Saudi Steel Pipe

Tenaris will begin consolidating SSP’s results as from January 21, 2019, the company said in a statement. (File photo: Reuters)
Updated 22 January 2019
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Tenaris acquires 48% stake in Saudi Steel Pipe

  • Tenaris has acquired a 47.79% of the shares of Saudi Steel Pipe Company (SSP)
  • Tenaris will begin consolidating SSP’s results as from January 21, 2019

JEDDAH: Global tube manufacturer and supplier Tenaris has acquired a 47.79% of the shares of Saudi Steel Pipe Company (SSP), for approximately US$141 million.

SSP, a welded steel pipes producer listed on the Saudi stock market, has facilities in the Eastern Province in Saudi Arabia, with a manufacturing capacity of 360,000 tons per year.

Mariano Armengol, the CEO of the Luxembourg based company, will become the Managing Director and CEO of the Saudi company.

Tenaris will begin consolidating SSP’s results as from January 21, 2019, the company said in a statement.

The acquisition means Tenaris expects to expand its industrial presence in Saudi Arabia, one of the largest markets for oil pipes.


Brent eases from 2019 highs as markets await US-China trade talks outcome

Updated 8 min 23 sec ago
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Brent eases from 2019 highs as markets await US-China trade talks outcome

  • The slight downward correction was driven by concerns about the health of the global economy this year
  • Bank of America Merrill Lynch expects Brent prices to average between $50 and $70 per barrel
SINGAPORE: Brent crude oil prices eased away from 2019 highs on Tuesday on caution that economic growth may dent fuel demand this year, although supply cuts led by OPEC still meant markets were relatively tight.
International Brent crude oil futures were at $66.08 per barrel at 0220 GMT, down 42 cents, or 0.6 percent from their last close, but still not far off the 2019 high of $66.83 a barrel hit in the previous session.
US West Texas Intermediate (WTI) crude futures were at $55.71 per barrel. While that was up 12 cents from their last settlement, it was below the $56.33 2019 high from the previous day.
Traders said the slight downward correction was driven by concerns about the health of the global economy this year.
Bank of America Merrill Lynch said in a note that the Sino-American trade dispute was hurting economic growth globally.
“Addressing global trade tensions is key for improving the economic outlook,” it said in a note.
China’s vice premier and chief trade negotiator, Liu He, and US Trade Representative Robert Lighthizer lead a round of trade talks this week in Washington.
Considering the economic outlook and supply and demand balances, the bank said it expects Brent prices to average between $50 and $70 per barrel, “anchored around $60.”
Despite some caution around trade, global oil markets remain relatively tight because of supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC), with top crude exporter Saudi Arabia cutting the most.
Saudi seaborne crude exports fell in the first half of February, with departures standing at 6.204 million barrels per day (bpd), a 1.341 million bpd decline on the previous month and 0.91 million bpd decline on the year, data intelligence firm Kpler said.
Further providing oil markets with support are US sanctions against petroleum exporters Iran and Venezuela.
Venezuela is a major crude supplier to US refineries while Iran is a key exporter to major demand centers in Asia, especially China and India.