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

BENGALURU (Reuters) - 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 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)