5 April 2024
Steppe Cement
Ltd
("Steppe Cement" or the
"Company")
Trading Update for the
Quarter ended 31 March 2024
The Company provides the following
trading update for the first quarter ended 31 March 2024 ("Q1
2024"). All numbers referenced below are unaudited.
Company Highlights
·
In Q1 2024, Steppe Cement sold 175,383 tonnes of cement for KZT 3,779 million (approximately USD 8.4 million, compared with 214,832 tonnes for KZT
4,938 million (approximately USD 10.8 million) in Q1 2023 (decreases of 18%
and 23%, respectively).
·
The average price (excluding VAT) received by Steppe for
delivered cement in Q1 2024
was KZT
21,545 (approximately USD
48) per tonne compared with
KZT 22,985
(approximately USD 51) per
tonne in Q1 2023 (a
decrease of 6%). For the first 3 months of
2024, the ex-factory price stood at
KZT 18,835
(approximately USD 42) per
tonne, a decrease of 2% from KZT
19,249 (approximately USD
42) per tonne, the
corresponding price in
2023.
·
Steppe Cement's market share decreased to 11.5% in
the first quarter of 2024 compared with 12.7% in the first quarter
of 2023.
·
Transportation costs have increased significantly
and shipments to the southern
region of
Kazakhstan result in low margins.
The cement market in winter is comparatively small
in the northern regions of Kazakhstan
compared with the summer season,
and therefore the Company,
which has been operating at full efficiency over the quarter, has
chosen to build up clinker inventory in
preparation of the summer season,
rather than make
sales at depressed prices.
·
Production of
clinker has increased by 25% compared with
Q1 2023 and therefore the
Company is well positioned
to take advantage of the high season.
Market overview
·
For the first quarter of 2024, 1.69 million tonnes
of cement were sold in Kazakhstan, a decrease of 12% compared to Q1
2023.
·
Cement exports by
Kazakhstan decreased by 6% compared to Q1 2023, primarily due to
reduced exports to Uzbekistan.
·
Imports to Kazakhstan were
stable at 4% of the market, with
the majority
of those imports
coming from Russia.
The Company currently estimates
Kazakhstan's cement market demand for 2024 to be approximately 11 million tonnes per
annum, 5% lower than in 2023.
FX
conversions are based on the average exchange rate for the quarter
ended 31 March 2024 of USD:KZT of 450.3 vs 454.9
in
2023.
For further information, please
contact:
|
Steppe Cement Limited
|
www.steppecement.com
|
|
Javier del Ser Pérez, Chief
Executive Officer
|
Tel: +(603) 2166 0361
|
|
|
|
|
Strand Hanson Limited (Nominated & Financial Adviser and
Broker)
|
www.strandhanson.co.uk
|
|
James Spinney / Robert Collins /
Ritchie Balmer
|
Tel: +44 20 7409 3494
|
|
|
|
The information contained within this announcement is deemed
by the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019.
