Friday 29 Mar 2024
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KUALA LUMPUR (Nov 26): Press Metal Aluminium Holdings Bhd’s net profit for the third quarter ended Sept 30, 2021 more than doubled to RM283.33 million, from RM121.98 million a year ago, on the back of higher revenue.

Revenue jumped 55.03% to RM2.89 billion from RM1.86 billion due to higher aluminium price and production output from its new Phase 3 Samalaju smelter which achieved full commissioning in mid-October, the group said in its filing to Bursa Malaysia.

The group has proposed a third interim dividend of one sen per share, which will be paid on Dec 3.

For the nine months ended Sept 30, 2021, the group’s net profit also more than doubled to RM744.63 million from RM314.61 million in the same period last year, as revenue rose 40.68% to RM7.63 billion from RM5.42 billion.

The group said the improvement in metal price and increased production output from the Phase 3 smelter have contributed to the significant increase in revenue and profit.

The group expects to achieve satisfactory results for the full year.

It said the recovery in global demand for aluminium in the first three quarters of 2021 was driven primarily by economic re-opening and supportive fiscal stimulus policies, and as a result, aluminium price remained buoyant during the quarter.

However, the positive sentiments from higher aluminium price were partially offset by the increase in its operating costs stemming from higher raw material prices, increase in consumable prices and persistently elevated logistics costs.

Press Metal added that power rationing in China poses further uncertainties to global supply chains and raw material prices.

On top of this, it said the group was faced with reduced workforce during the Movement Control Order period which had an impact on its overall operating efficiency.

“We foresee that these operational challenges will continue to be present in the near term,” it said, but added: “Moving forward into 2022, with anticipated increase of production volume, we target to expand into new markets for our value-added products.”

The group also said it wants to place high emphasis on strengthening its position within the low-carbon aluminium space while also accentuating the environmental, social and governance culture into its people and throughout its operations.

In a separate bourse filing, Press Metal said its 80%-owned subsidiary Press Metal Bintulu Sdn Bhd (PM Bintulu) has received notices of additional assessment from the Inland Revenue Board (IRB) for the years of assessment 2014, 2015, 2016, 2017, 2018 and 2019 amounting in aggregate to RM106.06 million.

“The IRB has imposed the additional income tax payable based on its view that certain income does not fall under pioneer status exemption approved by Malaysian Investment Development Authority.

“Based on legal advice obtained from our tax solicitors, PM Bintulu is of the view that there are reasonable grounds to challenge the notices of additional assessment raised by IRB,” the group said.

Press Metal's share price closed seven sen or 1.24% lower at RM5.57 on Friday, valuing the group at RM45.63 billion.

Year-to-date, the counter has risen 32.3%.

Edited ByS Kanagaraju
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