TIDMSTCM
RNS Number : 9106M
Steppe Cement Limited
19 September 2023
19 September 2023
Steppe Cement Limited
("Steppe Cement" or the "Company")
Interim Results for the Half Year Ended 30 June 2023 and General
Market Update
1. Interim Results
During the six-month period to 30 June 2023, the Group posted
revenue of USD36.9 million, a decline of 14% from USD43.1 million
in the corresponding period in 2022. The decline was mainly
attributable to the 11% lower sales volume. The drop was
concentrated in the first few months of the year when cement prices
were maintained. Consequently the Company decided to adjust pricing
to recover the volumes.
6 months 6 months % of
ended ended change
30 June 30 June
2023 2022
Sales (Tonnes) 749,034 837,063 -11%
------------------ -------------------- ---------------------
Consolidated Turnover (KZT
million) 16,702 19,779 -16%
------------------ -------------------- ---------------------
Consolidated Turnover (USD
million) 36.9 43.1 -14%
------------------ -------------------- ---------------------
Consolidated profit after
tax (USD million) 0.1 10.2 -99%
------------------ -------------------- ---------------------
Earnings per share (Cents) 0.1 4.7 -99%
------------------ -------------------- ---------------------
Average exchange rate (USD/KZT) 454 449 1%
------------------ -------------------- ---------------------
The average sales price was USD50 (KZT22,665) per tonne compared
with USD52 (KZT23,391) per tonne in the corresponding period in
2022.
The gross margin was reduced to 26% in the six-month period to
30 June 2023 compared with 46% in the same period last year due to
the combination of higher production costs, lower volumes and a
lower selling price. Selling expenses increased by USD0.9 million
or 16% to USD6.2 million, while general and administration expenses
increased 7% by USD0.2 million to USD3.4 million.
Volumes are recovering in the second half of the current year
and prices have been slightly increased, while the cost of
production is improving as well.
General inflation in Kazakhstan was 17% during the period, but
the situation has improved in the second half of 2023.
The Group posted a small net profit for the period of USD0.1
million compared with USD10.2 million profit after tax in the same
period in 2022.
2. Production and capex
-- Cash production costs increased by 11% in KZT in the first
half of 2023 primarily due to the higher electricity, diesel and
spare parts for maintenance costs together with lower production
volumes and significant repairs in line 5.
-- There were significant stoppages and repairs in the first
half of 2023 as a consequence of the unexpectedly cold weather
during the general stoppage of November 2022.
-- The separator of cement mill number 1 has been commissioned and work has started in
the separator of cement mill number 2. Together these two
projects will allow the increase of slag usage, reduce power
consumption and improve cement quality and stability.
3. Update on the Kazakh cement market
-- The Kazakh cement market during the first half of 2023
reduced by 5.6% compared to the same period last year.
-- The Company expects to maintain its market share at around 14% for the full year.
-- Exports from Kazakhstan [in the first half of 2023] remained
the same as in the corresponding period in 2022 at 0.55 million
tonnes.
-- Imports in the current period represented 4.3% of the local market, 2% less than in 2022.
4. Finance
-- Total finance costs for the period were USD 0.5 million with
interest expenses on bank debt falling to USD 0.2 million mostly on
subsidised loans while the Company maintained interest expenses on
lease liabilities at USD 0.1 million after the application of IFRS
16 on the 3-year wagon leases. The rental on those wagons was
previously treated as selling expenses. The contract to rent wagons
is due for renewal in the second half of 2023.
-- The borrowings of the Company as at 30 June 2023 were USD6.7 million while we
carried a cash balance of USD6.0 million. For comparison, on 30
June 2022 the
Company had USD5.4 million of borrowings and USD14.7 million in
cash.
A pdf copy of the announcement and the full interim financial
statements is available on the company's website at
www.steppecement.com
For further information, please contact:
Steppe Cement Limited www.steppecement.com
Javier del Ser Pérez, Chief Executive Tel: +(603) 2166
Officer 0361
Strand Hanson Limited (Nominated & Financial www.strandhanson.co.uk
Adviser and Broker)
James Spinney / Ritchie Balmer / Robert Collins Tel: +44 20 7409
3494
SUMMARY OF INTERIM FINANCIAL STATEMENT
FOR THE PERIODED 30 JUNE 2023 (UNAUDITED)
(In United States Dollars)
The Notes to the Interim Financial Statements form an integral
part of the Condensed Financial Statement. Please visit the
Company's website at www.steppecement.com to view the full interim
financial statements.
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies
Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS
FOR THE PERIODED 30 JUNE 2023 (UNAUDITED)
The Group The Company
6 months ended 6 months ended
30 June 30 June 30 June 30 June
2023 2022 2023 2022
USD'000 USD'000 USD'000 USD'000
Revenue 36,882 43,125 683 670
Cost of sales (27,405) (23,148) - -
------------- ------------- ------------ ------------
Gross profit 9,477 19,977 683 670
Selling expenses (6,154) (5,285) - -
General and administrative
expenses (3,421) (3,183) (176) (165)
------------- ------------- ------------ ------------
Operating (loss)/profit (98) 11,509 507 505
Interest income 93 266 - -
Finance costs (483) (435) - -
Net foreign exchange
(loss)/gain (14) (246) 18 3
Other income, net 563 940 - -
------------- ------------- ------------ ------------
Profit before income
tax 61 12,034 525 508
Income tax expense (9) (1,831) - -
------------- ------------- ------------ ------------
Profit for the period 52 10,203 525 508
============= ============= ============ ============
Attributable to shareholders
of the Company 52 10,203 525 508
============= ============= ============ ============
Earning per share:
Basic and diluted
(cents) 0.1 4.7
============= =============
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies
Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE PERIODED 30 JUNE 2023 (UNAUDITED)
The Group The Company
6 months ended 6 months ended
30 June 30 June 30 June 30 June
2023 2022 2023 2022
USD'000 USD'000 USD'000 USD'000
Profit for the period 52 10,203 525 508
Other comprehensive
income/ (loss):
Item that may not
be reclassified subsequently
to profit or loss
------------------------------------
Exchange differences
arising on translation
of foreign operations 48 (4,941) - -
Total comprehensive
income for the period 100 5,262 525 508
============ ============== ============ ===========
Attributable to shareholders
of the Company 100 5,262 525 508
============ ============== ============ ===========
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies
Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023 (UNAUDITED)
The Group The Company
Unaudited Audited Unaudited Audited
30 June 31 Dec 2022 30 June 31 Dec
2023 2023 2022
USD'000 USD'000 USD'000 USD'000
Assets
Non-Current Assets
Property, plant
and equipment 49,822 49,362 - -
Right-of-use assets 3 5 - -
Investment in subsidiary
companies - - 36,200 36,200
Loan to subsidiary
company - - 30,040 30,050
Other assets 196 1,531 - -
Total Non-Current
Assets 50,021 50,898 66,240 66,250
-------------- ---------------- -------------- -------------
Current Assets
Inventories 21,190 20,646 - -
Trade and other
receivables 1,938 2,045 3,461 2,372
Other assets 2,409 1,082 - -
Income tax receivable 1,421 603 - -
Loans and advances
to subsidiary companies - - 60 60
Advances and prepaid
expenses 8,687 8,577 16 7
Cash and cash equivalents 6,002 4,144 652 1,240
Total Current
Assets 41,647 37,097 4,189 3,679
-------------- ---------------- -------------- -------------
Total Assets 91,668 87,995 70,429 69,929
============== ================ ============== =============
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies
Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023 (UNAUDITED)
The Group The Company
Unaudited Audited Unaudited Audited
30 June 31 Dec 30 June 31 Dec
2023 2022 2023 2022
USD'000 USD'000 USD'000 USD'000
Equity and Liabilities
Capital and Reserves
Share capital 73,761 73,761 73,761 73,761
Revaluation reserve 1,747 1,793 - -
Translation reserve (125,804) (125,852) - -
Retained earnings
/
(Accumulated losses) 115,476 115,378 (3,695) (4,220)
-------------- -------------- --------------- --------------
Total Equity 65,180 65,080 70,066 69,541
-------------- -------------- --------------- --------------
Non-Current Liabilities
Borrowings 5,104 3,914 - -
Deferred taxes 2,460 3,267 - -
Deferred income 2,700 2,713 - -
Provision for
site restoration 182 178 - -
Total Non-Current
Liabilities 10,446 10,072 - -
-------------- -------------- --------------- --------------
Current liabilities
Trade and other
payables 10,402 7,348 - -
Accrued and other
liabilities 3,568 2,251 148 144
Amount due to
a subsidiary company - - 215 244
Borrowings 1,651 2,814 - -
Lease liabilities 421 59 - -
Taxes payable - 371 - -
Total Current
Liabilities 16,042 12,843 363 388
-------------- -------------- --------------- --------------
Total Liabilities 26,488 22,915 363 388
-------------- --------------
Total Equity
and Liabilities 91,668 87,995 70,429 69,929
============== ============== =============== ==============
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies
Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 30 JUNE 2023 (UNAUDITED)
Non-distributable Distributable
The Group Share Revaluation Translation Retained Total
capital reserve reserve earnings
USD'000 USD'000 USD'000 USD'000 USD'000
As at 1 January 2023 73,761 1,793 (125,852) 115,378 65,080
------------ ------ ---------------- ------ ---------------- ------ ------ ------------------ ------ ------------
Profit for the period - - - 52 52
Other comprehensive income - - 48 - 48
Total comprehensive income
for the period - - 48 52 100
Transfer of revaluation
reserve relating to
property,
plant and equipment through
use - (46) - 46 -
As at 30 June 2023 73,761 1,747 (125,804) 115,476 65,180
============ ================ ================ ================== ============
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies
Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2023 (UNAUDITED)
Non-distributable Distributable
The Group Share Revaluation Translation Retained Total
capital reserve reserve earnings
USD'000 USD'000 USD'000 USD'000 USD'000
As at 1 January
2022 73,761 2,068 (120,438) 110,190 65,581
------------- ---------------- ---------------- ------------------ ------------
Profit for the
period - - - 10,203 10,203
Other
comprehensive
loss - - (4,941) - (4,941)
Total
comprehensive
(loss)/income
for the period - - (4,941) 10,203 5,262
Transfer of
revaluation
reserve relating
to property,
plant and
equipment through
use - (137) - 137 -
As at 30 June 2022 73,761 1,931 (125,379) 120,530 70,843
============= ================ ================ ================== ============
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies
Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2023 (UNAUDITED)
The Company Share Accumulated Total
capital losses
USD'000 USD'000 USD'000
As at 1 January 2023 73,761 (4,220) 69,541
Total comprehensive income for the
period - 525 525
As at 30 June 2023 73,761 (3,695) 70,066
============= ============== ===========
As at 1 January 2022 73,761 (5,606) 68,155
Total comprehensive income for the
period - 508 508
As at 30 June 2022 73,761 (5,098) 68,663
=========== ============ ===========
STEPPE CEMENT LTD
(Incorporated in Labuan FT, Malaysia under the Labuan Companies
Act, 1990)
AND ITS SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2023 (UNAUDITED)
The Group The Company
6 months ended 6 months ended
30 June 30 June 30 June 30 June 2022
2023 2022 2023
USD'000 USD'000 USD'000 USD'000
OPERATING ACTIVITIES
Profit before income
tax 61 12,034 525 508
Adjustments for:
Depreciation of property,
plant and equipment 2,837 3,203 - -
Depreciation of
right-of-use
assets 3 823 - -
Other non-cash items 578 218 (1,088) (1,090)
---------------------- ------------ ------------ -------------------
Operating Profit/(Loss)
Before Working Capital
Changes 3,479 16,278 (563) (582)
(Increase)/Decrease
in:
Inventories 345 (2,922) - -
Trade and other
receivables,
advances and prepaid
expenses (22) (6,444) (9) (12)
Loans and advances from
subsidiary companies - - (20) (24)
Increase in:
Trade and other payables,
accrued and other
liabilities 3,622 3,494 4 56
Cash Generated From/(Used
In) Operations 7,424 10,406 (588) (562)
Income tax paid (1,777) (1,785) - -
Interest paid (483) (198) - -
---------------------- ------------ ------------ -------------------
Net Cash Generated
From/(Used
In) Operating Activities 5,164 8,423 (588) (562)
---------------------- ------------ ------------ -------------------
The Group The Company
6 months ended 6 months ended
30 June 30 June 30 June 30 June
2023 2022 2023 2022
USD'000 USD'000 USD'000 USD'000
INVESTING ACTIVITIES
Purchase of property,
plant and equipment (2,721) (2,870) - -
Purchase of other assets (24) (18) - -
Interest received 93 267 - 1,550
-------------- -------------- ------------ ------------
Net Cash (Used In)/Generated
From Investing Activities (2,652) (2,621) - 1,550
-------------- -------------- ------------ ------------
FINANCING ACTIVITIES
Proceeds from borrowings 1,703 3,346 - -
Repayment from borrowings (1,980) (2,815) - -
Payment of lease liabilities (363) (1,090) - -
-------------- -------------- ------------ ------------
Net Cash Used In Financing
Activities (640) (559) - -
-------------- -------------- ------------ ------------
NET INCREASE/(DECREASE)
IN CASH AND CASH EQUIVALENTS 1,872 5,243 (588) 988
EFFECTS OF FOREIGN EXCHANGE
RATE CHANGES (14) (685) - -
CASH AND CASH EQUIVALENTS
AT BEGINNING OF THE PERIOD 4,144 10,136 1,240 614
-------------- -------------- ------------ ------------
CASH AND CASH EQUIVALENTS
AT END OF THE PERIOD 6,002 14,694 652 1,602
============== ============== ============ ============
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IR SFISWUEDSEIU
(END) Dow Jones Newswires
September 19, 2023 04:00 ET (08:00 GMT)
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