Business
Results and Annual Report for 2016
Results and Annual Report for 2016.
About this update from Steppe Cement Ltd
[{"type":"text","content":"\n \nRNS Number : 7442F Steppe Cement Limited 22 May 2017 \n\nCEO STATEMENT\n \nThe 2016 results versus 2015 were conditioned by the sharp devaluation of the Kazakhstan Tenge (KZT) in August 2015 against our reporting currency. The weakness of the KZT against the rouble allowed the market to cut imports and increase exports significantly. The overall domestic market went down by 6% and our sales volume decreased by 4% while the price in KZT decreased by 4%. \n \nIn 2016 we produced exclusively from the dry lines and our cost of production increased in line with official inflation of 8.5%.\n \nSteppe Cement operated Line 5 at 84% of its current capacity (1.1 million tonnes) and Line 6 at 74% of capacity (0.8 million tonnes) as we took an extended repair period to increase its reliability and capacity for 2017. We expect to increase the capacity of Line 6 to 0.9 million tonnes. \n \nShareholders' funds increased marginally to USD58 million from USD56.7 million over the year. The assets remain many times undervalued compared to their replacement costs due to the devaluation of the local currency.\n \n\n\n\n\n Key financials\n\n\nYear ended\n31- Dec-16\n\n\nYear ended\n31- Dec-15\n\n\nInc/(Dec)%\n\n\n\n\nSales (tonnes of cement)\n\n\n1,570,140\n\n\n1,643,136\n\n\n(4%)\n\n\n\n\nConsolidated turnover (KZT million)\n\n\n17,941\n\n\n19,537\n\n\n(8%)\n\n\n\n\nConsolidated turnover (USD Million)\n\n\n52.5\n\n\n93.6\n\n\n(44%)\n\n\n\n\nConsolidated profit/(loss) before tax (USD Million)\n\n\n0.7\n\n\n(8.8)\n\n\n108%\n\n\n\n\nConsolidated profit/(loss) after tax (USD Million)\n\n\n0.2\n\n\n(3.4)\n\n\n106%\n\n\n\n\nProfit/(Loss) per share (US cents)\n\n\n0.1\n\n\n(1.5)\n\n\n107%\n\n\n\n\nShareholders' funds (USD Million)\n\n\n58.0\n\n\n56.7\n\n\n2%\n\n\n\n\nAverage exchange rate (USD/KZT)\n\n\n342\n\n\n222\n\n\n(54%)\n\n\n\n\nExchange rate as at year end (USD/KZT)\n\n\n333\n\n\n339\n\n\n1%\n\n\n\n\n \nIn 2016 Steppe Cement posted a marginal net profit of USD 0.2 million. Steppe Cement's EBITDA decreased to USD 9.7 million from USD 22.7 million in 2015 mostly due to the devaluation of the KZT against the USD, lower pricing and the reversal of provision of electricity charges. \n \nThe overall market volume decreased by 6% in ...