Market update for 3Q ended 30 September 2017

RNS Number : 2596T

Steppe Cement Limited

11 October 2017

 

11 October 2017

Steppe Cement Ltd

Market Update for the Third Quarter ended 30 September 2017

Third quarter 2017 revenue of KZT 9,312 million was 27% higher than revenue of KZT 7,316 million achieved in the corresponding quarter in 2016. For the 9 months ended 30 September 2017, Steppe Cement Ltd ("Steppe Cement") recorded revenue of KZT 17,865 million compared with KZT 15,506 million in the corresponding 9-month period in 2016, representing a 15% increase.

A sales volume of 685,745 tonnes was achieved during the third quarter, a 12% increase from the third quarter of 2016 due to good clinker output and stock availability. For the first 9 months of 2017, the sales volume decreased by 3% to 1,336,078 tonnes from 1,371,024 tonnes in the corresponding 9-month period in 2016.

The average price (ex-VAT) for delivered cement was KZT 13,372 per tonne in the first 9 months compared with KZT 11,310 per tonne in the corresponding period in 2016. For the first 9 months of 2017, the ex-factory price stood at KZT11,198 per tonne, an increase of 18% over KZT9,451 in 2016.

For the first 9 months of 2017, the cement market in Kazakhstan was the same as in 2016 at 7.3 million tonnes. Imports increased from 5% to 7% of total consumption and exports from Kazakhstan more than doubled to 0.7 million tonnes. Steppe Cement maintains its estimate of the cement market for 2017 at 9 million tonnes, with Steppe Cement's market share at 17%.

Steppe Cement's AIM nominated adviser and broker is RFC Ambrian Limited.

Nominated Adviser contact: Stephen Allen or Andrew Thomson on [phone].

Broker contact: Charlie Cryer at [phone]

 

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