Steppe Cement Ltd on Wednesday said it recorded revenue growth in 2022, citing positive market conditions as it focused on the Kazakh domestic market.

The Kazakhstan-focused cement manufacturing holding company said 2022 revenue grew 11% to KZT40.0m or around £71,300 from KZT36.0m or £64,100 a year earlier.

The average price for delivered cement in 2022, excluding value added tax, was KZT23,963 or £42.67 per tonne, up 12% from KZT21,332 or £37.98 a year earlier.

It cited positive market conditions as it focused on the Kazakh domestic market, where cement market consumption in 2022 remained at around 11.6 million tonnes.

Local market share was up to 14.5% from 13.9% in 2021, while exports were reduced to zero to optimise logistics and concentrate sales in ‘more attractive’ domestic markets.

But cement sales volume was down slightly to 1.67 million tonnes from 1.69 million tonnes.

Looking ahead, Steppe Cement said official inflation in Kazakhstan stood at 20% as of Wednesday, meaning it will have a significant impact on 2023 production costs.

Despite this, it said it will continue its capital expenditure programme to increase production capacity of clinker and higher grades of cement by 2023. This is also towards looking to reduce power and coal consumption.

It also noted extreme weather conditions in Kazakhstan and logistical difficulties in the central Asian country’s railway network in November and December. The board is reportedly working towards minimising its impact in 2023.

Steppe Cement expects to release its 2022 in May.

Shares in Steppe Cement were down 11% to 43.14 pence each in London on Wednesday morning.

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