The world’s top uranium-producing company reported a steep increase in revenue and profit for the first half of 2023, which can be partially attributed to the rising price of the commodity this year.
The financial results released by Kazakhstan’s Kazatomprom (FRA: 0ZQ) on Friday included a 25 per cent increase in revenue to approximately US$1.3 billion and a 46 per cent rise in operating profit year-over-year (YoY)to US$540 million. The company also observed a 33 per cent jump up in net profit YoY to around US$477.5 million for H1.
The price of uranium is one of the key reasons for the company’s financial success. Its value rose by 40.3 per cent to US$56.23 per pound between January and June.
“The company demonstrated strong financial results for the first half of 2023, which reflects a significant improvement in the situation on the uranium market over the past year,” said Kazatomprom’s Chairman of the Board Yerzhan Mukanov.
“This is mainly due to an increase in uranium prices as well as in the sales volume associated with changes in the timing of customer requests for supply and corresponding differences in delivery schedules in the first half of 2023 and 2022,” he added.
Kazatomprom 1H23 Financial Resultshttps://t.co/35B27axGOl
— Kazatomprom (@NAC_Kazatomprom) August 25, 2023
The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 48 per cent YoY in H1 to US$710 million. Its operating cash flow rose by 64 per cent to US$910 million and the company had a cash balance of US$620 million.
Kazatomprom’s net debt also decreased significantly YoY at the end of June, dropping by 59.8 per cent to US$380 million.
Kazakhstan is the world’s top uranium-producing country, its state-owned company Kazatomprom controls a significant portion of the world’s uranium supply and has a substantial influence on the market.
In 2019, the country produced 43 per cent of the world’s uranium and approximately two-thirds of the global supply of the radioactive metal comes from Kazakhstan, Canada and Australia — according to the World Nuclear Association.
Kazatomprom is also involved with extracting rare earth elements and received an exploration license from authorities in Kazakhstan to develop its own deposit of rare metals in the country’s Aktobe Region in May.
Kazatomprom shares rose by 0.73 per cent Monday to the equivalent of $40.58 on the Frankfurt Stock Exchange.