Steppe Cement posts 78% profit drop amid rising energy costs

Published 26/06/2025, 07:58
Steppe Cement posts 78% profit drop amid rising energy costs

KUALA LUMPUR - Steppe Cement Limited (AIM:STCM) reported a significant decline in profits for 2024 despite modest revenue growth, according to a press release statement issued Thursday.

The Kazakhstan-based cement producer saw its net profit fall to $1 million for the year ended December 31, 2024, down 78% from $4.5 million in 2023. The company attributed the decline primarily to rising input costs, particularly a 42% increase in electricity tariffs, and a one-off VAT charge.

Revenue rose 4% to $84.9 million, while EBITDA decreased to $7.5 million from $12.4 million in the previous year.

Steppe Cement maintained its market position with a 14.5% share of Kazakhstan’s cement market, where overall consumption increased to 11.9 million tonnes, up from 11.5 million tonnes in 2023. The company reported that infrastructure demand supported market growth.

On the production side, the company completed an upgrade to its Line 6 facility, which helped increase clinker output to 1.47 million tonnes, exceeding budget targets. Despite cost pressures, the company maintained cement and clinker cash costs at $31 and $27 per tonne respectively through operational efficiency measures.

The company’s Annual General Meeting is scheduled for July 25, 2025, at its Malaysian office in Kuala Lumpur.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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