(Alliance News) – Steppe Cement Ltd said on Friday it posted a loss in the first half of 2024, following a reduction in sales volume and an increase in maintenance costs.
The operator of two cement production facilities in Kazakhstan said its revenue for the six months to June 30 was $34.4 million, down 6.8% year-on-year from $36.9 million.
The company reported a pre-tax loss of $4.4 million, compared with a profit of $61,000 the previous year.
Meanwhile, cost of sales increased 6.6% from $27.4 million to $29.2 million, partly due to “higher electricity and maintenance costs during the period.”
The company also reported an average cement selling price of USD 48 per tonne, down 4% from USD 50 per tonne in the same period last year.
The company said: “This decline [du chiffre d’affaires] is mainly attributable to the 4% reduction in sales volume. Although the first quarter saw a significant decline in sales volume of 18%, this was offset by a 2% increase in the second quarter of the year, following price adjustments to align with market conditions. Sales volume continued to recover in the third quarter of 2024, and cement prices increased.”
Steppe Cement expects to maintain or increase its market share in the Kazakhstani cement market to around 14% for the full fiscal year ending December 31, 2024.
Steppe Cement shares fell 17% to 12.91 pence each in London on Friday morning.
By Emily Parsons, Alliance News reporter
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