Malaysia Smelting Corp Bhd’s (MSC) net profit plunged 72.73% year-on-year (YoY) in the second quarter ended June 30, 2018 (2Q18) to RM2.46 million on the back of a stronger ringgit against the US dollar, lower recovery yield, higher production cost and operating expenses.
“Our financial performance continues to be impacted by the inefficiencies of the aged smelting equipment at the Butterworth plant, which resulted in lower recovery yields,” MSC CEO Datuk Dr Patrick Yong said in a statement last week.
MSC’s overheads increased as it progressively move operations to its new plant, the company added.
Revenue in the quarter increased 6.15% YoY to RM326.82 million due to higher sales.
In an exchange filing last week, the tin producer noted average tin prices in 2Q on the Kuala Lumpur Tin Market increased in US dollar terms.