Press Metal records higher 2Q net profit of RM256m

The increase in earnings is bolstered by higher realised aluminium prices and increased production output

by HARIZAH KAMEL / Pic by TMR FILE PIX

PRESS Metal Aluminium Holdings Bhd’s net profit for the second quarter ended June 30, 2021 (2Q21), nearly tripled to RM255.58 million from RM90.07 million a year ago, bolstered by higher realised aluminium prices and increased production output.

Its quarterly revenue increased 52.55% year-on-year (YoY) to RM2.64 billion as a result of the two factors.

The largest aluminium smelter in South-East Asia has approved a second interim single tier dividend of one sen per ordinary share, payable on Sept 29, 2021.

On a year-to-date basis, revenue for the first half of 2021 (1H21) increased by 33.17% YoY to RM4.74 billion from RM3.56 billion in 1H20 while profit after tax and non-controlling interests increased by 139.47% YoY to RM461.30 million versus RM192.63 million profit in 1H20.

In its exchange filing yesterday, Press Metal group CEO Tan Sri Paul Koon stated that global demand for aluminium, especially billets, increased substantially during 1H21.

Aluminium price on the London Metal Exchange continues to be resilient at the current level of above US$2,500 (RM10,550) per tonne.

“We continued to operate under a reduced workforce environment during the pandemic situation. Thus, our production volume was not optimised. The pace of our Phase 3 ramp-up decelerated accordingly as we put in place precautionary measures to safeguard our employees.

“Amid these challenges, full commissioning is still expected in 4Q21 and our production volume will increase progressively in tandem. As Malaysia moves toward full vaccination soon, we look forward to a normalised working environment hence, higher operation efficiency,” he said.

Moving forward, Press Metal envisages to be on a stronger footing with higher production volume from Phase 3, healthy aluminium prices and anticipated economic rebuilding, Koon concluded.