17th Oct 2025 12:01
(Alliance News) - Steppe Cement Ltd on Friday said its revenue increased in the third quarter of the year due to a higher sales volume amid record production volumes of clinker and cement.
The cement producer in Kazakhstan reported revenue of KZT18.28 billion, or around USD34.1 million, in the three months to the end of September, up 21% from KXT15.09 billion a year earlier.
Nine-month revenue for the year-to-date jumped 28% to KZT39.00 billion from KZT30.52 billion.
Shares in Steppe Cement were up 8.9% at 19.60 pence in London on Friday morning.
The increased revenue in the third quarter was "largely attributable" to a higher sales volume during the period of 701,643 tonnes, 13% higher than in 2024.
There was also a 7% increase in KZT in the price of products sold in the third quarter.
For the first nine months of the year, the volume of sales was 15% higher at 1.55 million tonnes from 1.34 million tonnes in 2024.
The average price, excluding VAT, for delivered cement was KZT25,145 per tonne in the first nine months, up 11% from KZT22,755.
Steppe Cement said the price fell 3% in US dollars due to the devaluation of the Kazakh tenge by around 13% against the dollar.
The firm said it had cash and cash equivalents of USD14 million on October 6. It plans to reserve a portion of this for growth capex plans that it is finalising.
The company said it still plans to return surplus capital to shareholders toward the end of the year.
For the first nine months of the year, domestic cement demand in Kazakhstan reached 11.2 million tonnes, Steppe Cement said, which is 19% higher than 9.4 million last year.
"During the period, at a macro level, exports to Uzbekistan have virtually stopped due to oversupply in the Uzbek market, while remaining export destinations are Kyrgyzstan and Russia," the company said.
The total Kazakh cement market demand for the full year is expected to reach around 13.0 million tonnes, and Steppe's market share is expected to stay at between 14% and 15%.
Despite the increase in demand, Steppe said producer prices have not shown a corresponding increase due to reduced exports and competitive pressure from exporters to the Uzbek market, the commissioning of a new cement plant by a competitor, a rise in railway costs and the rapid offset of a short-term shortage earlier in the season.
"During the first nine months of 2025, the company has achieved record production volumes of clinker and cement, exceeding the results of any comparable period in previous years," said Chief Executive Officer Javier del Ser Perez.
"The plant continues to increase production and remains focused on driving further growth whilst limiting the capex required."
By Michael Hennessey, Alliance News reporter
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