Business
Final Results
Final Results.
About this update from Steppe Cement Ltd
[{"type":"text","content":"\n Steppe Cement Limited\n16 April 2008\n\n\n\n16 April 2008\n\n Steppe Cement Ltd\n\n Annual results, update on operations and progress with cement plant\n refurbishment\n\n\n\nResults\n\n\nSteppe Cement Ltd ('Steppe Cement' or 'the Company') is pleased to announce its\npreliminary annual results for the year ended 31 December 2007:\n\n Year Year Inc/\n ended ended (Dec)\n 31-Dec-07 31-Dec-06 %\n\nSales (tonnes) 820,287 740,322 11%\n\nConsolidated turnover (USD Million) 100.8 55.6 81%\nConsolidated profit before tax (USD Million) 53.6 21.5 150%\nConsolidated profit after tax (USD Million) 37.2 14.4 158%\nEarnings per share (USD) 0.33 0.13\n\nShareholders' funds (USD Million) 110.5 69.2 60%\n\nExchange rate (USD/KZT) 122.5 126.0\n\n\n2007 witnessed an increase in sales volume of 11%, whilst average Tenge selling\nprices rose by 60% and consolidated profit after tax increased by 158% compared\nto the previous year.\n\n\nDividends\n\n\nAlthough cash flow and profits have shown substantial improvement over the last\nyear the group still has heavy capital expenditure commitments on plant\nrefurbishment in the short term which precludes the payment of a dividend from\nprofits for the 2007 year.\n\n\nWet lines operations\n\n\nThe wet lines performed in line with our expectations and we intend to increase\ntheir output marginally in 2008 as a consequence of the implementation of a new\nchain system inside the kilns.\n\nThe Company completed the refurbishment of cement mill 7 in the wet lines area\nduring 2007 and intends to refurbish cement mill 6 during 2008. This will enable\nthe Company to utilize the wet lines as a completely independent unit from the\ndry lines.\n\n\nDry Lines Refurbishment\n\n\nIn 2007 Steppe Cement invested USD 62 m in the refurbishment of lines 5 and 6.\nDelays were experienced with the project due to problems relating to the\nclearance of materials from customs during the summer as a consequence of Kazakh\nlegislation that was subsequently amended in November 2007. The Company had\ncustom cleared the main materials for line 6 by February 2008.\n\nFurthermore, the cement plant was subject to a very cold winter that slowed the\nprogress of work on site and some suppliers extended the delivery period agreed\nbeforehand due to global material constraints.\n\nPresent expectations are that the Company will commence ...