Steppe Cement records 11% revenue growth in 2022

Steppe Cement records 11% revenue growth in 2022
12 January 2023

Steppe Cement Ltd recorded 11 per cent revenue growth in 2022 to KZT40m (US$86,560) from KZT36m a year earlier, citing positive market conditions as it focussed on the Kazakh domestic market.

The average price for delivered cement in 2022, excluding value added tax, was KZT23,963/t, up 12 per cent from KZT21,332 a year earlier.

Steppe Cement reported positive market conditions in the Kazakh domestic market where cement market consumption remained at around 11.6Mt last year. Steppe Cement’s local market share was up to 14.5 per cent from 13.9 per cent in 2021, while exports were reduced to zero to optimise logistics and concentrate sales in "more attractive" domestic markets.

However, cement sales volume was down to 1.67Mt from 1.69Mt. It also noted extreme weather conditions in Kazakhstan and logistical difficulties in the central Asian country's railway network in November and December. The board is reportedly working towards minimising its impact in 2023.

With official inflation in Kazakhstan running at at 20 per cent production costs can expect to be significantly higher going forward. Despite this, the company said it will continue its capital expenditure programme to increase production capacity of clinker and higher grades of cement by 2023, while looking to reduce power and coal consumption.

Published under Cement News