12th Sep 2019 11:10
(Alliance News) - Steppe Cement Ltd on Thursday reported a rise in interim profit and revenue, but warned of a contraction in the Kazakh cement market.
Steppe sold 780,315 tonnes of cement in the six months to June 30, up 6% on the year before, helping revenue in US dollar terms rising 13% to USD37.1 million.
Steppe's pretax profit for the period was USD4.3 million, multiplied from USD405,000 the year before, boosted by the higher revenue.
Production costs were up 17% in the half, the company said, due to lower clinker production as both lines were stopped for longer-than-usual annual maintenance. The firm expects volumes lost in the first half to be made up in the second half.
The Kazakh cement market decreased 3% in the half, Steppe said, and the company believes the market will likewise contract by 3% over the whole of 2019. Steppe's interim market share was 17% from 15.5% a year prior, and it expects to at least maintain this in 2019.
Steppe shares were 14% lower in London on Thursday morning at 29.15 pence each.
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