14th Apr 2020 15:43
(Alliance News) - Steppe Cement Ltd on Tuesday reported lower cement sales for the first quarter of 2020.
The stock was trading 8.8% lower at 18.70 pence each on Tuesday afternoon in London.
The construction materials producer said that for the first three months to the end of March, it sold 235,896 tonnes of cement for KZT4.00 billion - around GBP7.5 million - down from 266,393 tonnes sold for KZT4.46 billion in the same period in 2019.
The average price for delivered cement was KZT16,970 per tonne, up from KZT16,723 per tonne.
Steppe Cement said its performance came as a result of it maintaining pricing over volumes in its recently-ended quarter, instead of maintaining volumes over pricing like had been done in previous quarters.
While the Kazakh cement market increased by 15% year-on-year, Steppe Cement's market share decreased to 13% from 17%.
Looking ahead, Steppes said that while exports from Kazakhstan have increased by 34% year-on-year, it expects the country's cement market demand to decrease due to the uncertainty arising from oil market instability and the Covid-19 outbreak. However, it assured that its factory is operating at full capacity and it does not expect to have liquidity problems.
"We continue to operate the factory at capacity and we do not anticipate any liquidity problems, as we have more than USD6 million in cash, sufficient clinker in store, credit lines from the main banks in Kazakhstan and we are postponing principal debt payment where possible," the company said.
By Ife Taiwo; [email protected]
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