•    Joint Stock Company Uzbek Metallurgical Plant (RSE: UZMK) (hereinafter referred to as JSC "Uzmetkombinat", the "Company"), a leading manufacturer of iron and steel products in Uzbekistan, announces the publication of financial results for the second quarter and the first half of 2023, or for the period from April 1 to June 30, 2023 and from January 1 to June 30, 2023 respectively, prepared under the national accounting standards (hereinafter referred to as the "NAS").
      The issuer's report on the results of the first half of 2023 under NAS is available for review at the link:, as well as on the company's website. A summary table with financial results, based on the report:

    Key results for the second quarter and the first half of 2023 include:
  • As expected, since the beginning of Q2 2023, the company has reached 100% utilization level of its production capacity and reached sales comparable to quarterly volumes of previous years;
  • The company's revenue for Q2 2023 declined 1% year on year (YoY) but has improved 15% on a quarter to quarter (QoQ) comparison. The latter points to the recovery in sales compared to Q1 2023. The decrease in sales volumes at the beginning of 2023 (revenue fell by 6% in Q1 2023 compared to last year) was caused by downtime due to power outages in the country, as well as due to difficult weather conditions that affected shipment of finished products;
  • Cost of sales in Q2 2023 increased by 13% YoY, mainly due to an increase in the cost of energy for all large producers in Uzbekistan which started already in the 1Q23;
  • Administrative expenses decreased in the Q2 2023 YoY implying that the decrease in the gross profit was mainly due to the growth in cost of sales;
  • In the first half of the year and in the Q2 2023, the company recorded a positive result from foreign exchange differences (+121 billion UZS from foreign exchange differences in 1H 2023) compared to a negative result from foreign exchange differences in the same period last year (-129 billion UZS from exchange differences in 1H 2022), which was caused by the change in the currency mix in liabilities;
  • As a result of the above factors, the company's net profit decreased in Q2 2023 by 25% YoY - an improvement in dynamics, as the net profit in Q1 2023 declined 41% YoY. Net income margin in Q2 2023 fell by only 3 percentage points compared to the same period in 2022;
  • JSC Uzmetkombinat continues to pursue a large-scale investment program, in particular, focusing on the construction of a casting and rolling complex. Its partial launch is planned for 2024. The company expects to reach full capacity in 2025, which will double the company's production capacity compared to 2022;
  • In the 1H 2023, the company was actively transferring its non-core assets under the management of specialized third parties, which ultimately will have a positive effect on the administrative cost dynamics;
  • A slight increase in debt obligations at the end of Q2 2023 compared to Q1 2023 was due to increase in local loans used in the company's investment program;
  • The company’s overall financial performance in Q2 2023 has improved QoQ suggesting a recovery from one-time events which affected the company's revenue and costs in Q1 2023;
  • On May 8, 2023, the company decided on a rights issue: As a result of this placement, the Uzbekistan Fund for Reconstruction and Development ("UFRD"), the largest state-owned investment fund in the country, acquired the entire volume of issued preferred shares, as well as a part of ordinary shares. Funds in the amount of 140 million euros from the UFRD have already been received by the company to support investment in the casting and rolling complex and transferred during the registration of the placement from accounts payable ("Debt to founders") to the authorized capital of the company ("Authorized capital"), which is accordingly reflected in the financial statements of JSC "Uzmetkombinat", in its balance sheet for the 1H 2023 under NAS;
  •  The main purpose of the additional issue of securities is to strengthen the company's balance sheet. The increase in the authorized capital opens up additional opportunities for attracting borrowed funds to finance the current investment program.
  JSC Uzmetkombinat (JSC UZMK) is the leader of ferrous metallurgy in Uzbekistan, counting its history from 1944. Its manufacturing plant has an installed annual capacity of more than 1 million tons of rolled products and is implementing a large-scale investment program to increase capacity to 2.5 million tons per year during 2021-2025. The enterprise employs more than 12,000 people. Its products are sold in all regions of the country and are exported to various countries of the world, including Europe. More than 80% of the company's shares are owned by the Uzbekistan state. A significant portion of the company’s shares is traded on RSE "Toshkent". Common and preferred shares of the company have the status of highly liquid, and the market capitalization of the company is around UZS 4 trillion (approx. USD 350 million). 

  Additional inquiries should be addressed to :
  Timur Sharifullin –

  This financial release contains forward-looking statements that reflect the current views of JSC Uzmetkombinat management regarding future events. They are generally denoted by the words "expect", "anticipate", "intend", "estimate", "aspire", "plan", "will", "forecast" and comparable expressions, and usually contain information that refers to expectations or goals regarding economic conditions, sales revenue, or other criteria for the success of an enterprise. Forward-looking statements are based on current plans, estimates and expectations within the current legal and regulatory environment and are therefore only valid as of the date indicated. Therefore, such statements should be considered with caution. Such statements are subject to numerous risks and uncertainties (such as those described in publications), most of which are difficult to estimate and are generally beyond the control of JSC Uzmetkombinat. Relevant factors include the consequences of prudent strategic and operational initiatives, including the acquisition or disposal of companies (interests in them) or other assets. If certain risks and uncertainties arise, or if the assumptions on which the statements are based prove incorrect, the actual results of JSC Uzmetkombinat may differ materially from those expressed or implied in these statements. Uzmetkombinat JSC cannot give any guarantee that expectations or goals will be achieved. Uzmetkombinat JSC, despite existing legal obligations, disclaims any responsibility for updating forward-looking statements to reflect new information or future events or other conditions or circumstances.  
   In addition to key figures prepared in accordance with IFRS and NSBU, respectively, JSC Uzmetkombinat presents key non-GAAP measures such as EBITDA, EBIT, net debt and net financial liabilities that are not a component of accounting rules. These key figures should be considered as a supplement to, but not as a substitute for, data prepared in accordance with IFRS. Non-GAAP key figures are not subject to IFRS or any other generally applicable accounting rules. When evaluating the net assets, financial position and performance of JSC Uzmetkombinat, these additional indicators should not be used in isolation or as an alternative to key indicators presented in the consolidated financial statements and calculated in accordance with relevant accounting principles.
   Rounding differences can occur in relation to percentages and figures.