Press Metal Aluminium 1Q earnings rise on higher prices, production

by FAYYADH JAAFAR

PRESS Metal Aluminium Holdings Bhd stated higher production and prices boost sales and earnings for the first quarter ended March 31, 2022 (1Q22).

The aluminium producer’s revenue rose 86.6% year-on-year (YoY) in the 1Q22 to RM3.92 billion while net profit rose 104.7% YoY to RM421.02 million due to above factors.

The company declared a dividend of 1.5 sen per share, payable on June 27, 2022.

Press Metal Aluminium’s CEO Tan Sri Paul Koon stated the company is poised to take advantage of the current market conditions.

“Market fluidity on the backdrop of demand and supply dynamics is an expected phenomenon in our business.

“We have experienced numerous cycles over the years, and ultimately, placing an emphasis on our own competency and efficiency is how we continue to remain competitive,” he stated in a press release today.

With Europe’s persistent high energy costs leading to curtailment of aluminium supply, Press Metal Aluminium believes the market situation will likely improve in the near future.

China is currently attempting to fill the supply gap in the western markets as its domestic market activities face a temporary slowdown due to the implementation of Covid-19 pandemic lockdowns in recent months.

“This could swiftly reverse when the Chinese economy switches back on gear with the eventual easing of lockdowns coupled with its US$2.3 trillion (RM10.04 trillion) infrastructure plan to spur the economy,” Koon added.

With the reopening of economies and heightened manufacturing activities in the region, Press Metal Aluminium anticipates that South-East Asia, being an export hub, should see additional demand for raw materials such as aluminium.

Koon added as the region’s largest aluminium smelter in the region, Press Metal Aluminium is well positioned to seize opportunities as customers prefer to avoid uncertainties stemming from logistic disruptions and trade tensions.

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