Why is this important
A sharp increase in profit in the III quarter (+558%) indicates a recovery in operational efficiency after a weak half-year. However, the annual profit is still 15.9% lower due to currency losses (476 billion soums) and an increase in interest expenses (+36.6%). The growth of long-term loans by 23.5% to 3.9 trillion soums indicates investments in modernization or expansion of production.
What happened
- Net profit for 9 months – 188.8 billion soums (-15.9% year-on-year);
- Profit in the III quarter – 167.7 billion (+558% compared to the I half of the year, where it was 21.1 billion);
- Administrative expenses decreased by 27.3% to 176.7 billion;
- Interest expenses increased by 36.6% to 309.5 billion soums;
- Losses from exchange rate differences – 476 billion soums (compared to 279.5 billion years ago);
- Long-term loans increased by 23.5% to 3.9 trillion soums.
Financial indicators
Profit:
- 9 months of 2025: 188.8 billion (-15.9%);
- I half of 2025: 21.1 billion;
- III quarter of 2025: 167.7 billion (+558% compared to the first half of the year).
Expenses:
- Administrative: 176.7 billion (-27.3%);
- Interest: 309.5 billion (+36.6% from 226.6 billion).
Currency transactions:
- Losses from exchange rate differences: 476 billion (was 279.5 billion);
- Income from exchange rate differences: 389.5 billion (was 173.6 billion).
Credit portfolio:
- Long-term loans: 3.9 trillion (+23.5% against 3.1 trillion);
- Short-term loans: 2.2 trillion (-4.3% vs. 2.3 trillion).
Analysis
Explosive growth in the III quarter: profit in the III quarter amounted to 167.7 billion — an increase of 55.8% compared to the first half of the year (21.1 billion). This indicates a sharp improvement in operational indicators: possibly, an increase in metal products prices, an increase in sales volumes, or a one-time profit from a large transaction.
Decrease in annual profit: based on the results of 9 months, profit is still 15.9% lower year by year due to weakness in the first half of the year. Reasons: currency losses (476 billion), growth in interest expenses (+36.6%), possible fall in metal prices at the beginning of the year.
Reduction of administrative expenses: decrease by 27.3% to 176.7 billion — a positive signal about improving management efficiency. It is possible to optimize the number of employees, reduce representative and other expenses.
Interest expense growth: the 36.6% increase to 309.5 billion is due to the growth of long-term loans (+23.5%) and high interest rates (the average loan interest rate for businesses is 20-25%).
Currency losses: losses from exchange rate differences increased from 279.5 billion to 476 billion soums. This is due to the strengthening of the sum: dollar obligations (loans, contracts) became more expensive in sum terms. However, income from exchange rate differences also increased from 173.6 billion to 389.5 billion, partially compensating for the losses.
The growth of long-term loans: an increase of 23.5% to 3.9 trillion soums indicates investments in modernizing production, expanding capacities, or purchasing equipment. This is a positive signal for long-term prospects, but it increases the debt burden.
Reduction of short-term loans: decrease from 2.3 trillion to 2.2 trillion (-4.3%) may indicate improvement in working capital management or transition to long-term financing.
Context
“Uzmetkombinat” is the largest metallurgical plant in Uzbekistan, producing cast iron, steel, and rolled products. Main products: reinforcement, beams, sheet metal. The plant depends on global metal prices and raw material imports (iron ore, coking coal).
The metallurgical industry faced volatility in steel and iron ore prices in 2025. The prices of rebar and sheet metal fluctuated due to decreased demand in China and excess supply in the global market.
The strengthening of the soum (the dollar exchange rate fell from 12,817 to 12,053 soums) created foreign exchange losses for exporters and companies with dollar obligations. “Uzmetkombinat” has significant foreign currency loans, which explains the increase in losses from exchange rate differences.
Recovery in the III quarter can be attributed to increased domestic demand for metal products (construction boom, +33% growth in construction lending) and seasonal factors (the peak of construction work in summer-autumn).
