KUCHING: Sharply higher sales and the strengthening of the US dollar have contributed to Press Metal Aluminium Holdings Bhd’s soaring group revenue to RM4 billion in second quarter to June 30, 2022 (Q22022) from about RM2.64 billion a year ago, representing an increase of a whopping RM1.36 billion.
The higher revenue drove group net profit to RM409.2 million from RM255.6 million previously. The company’s earnings per share rose to 4.97 sen from 3.16 sen.
To reward its shareholders, Press Metal has declared a second interim dividend of 1.75 sen per share, payable on Sept 29.
Press Metal group is involved in the manufacturing and marketing of upstream aluminium products, manufacturing and trading of downstream aluminium extrusion products, refining of alumina as well as contracting of aluminium and stainless steel products.
The group owns aluminium smelting plants in Samalaju Industrial Park, Bintulu and Mukah with combined smelting capacity of 1.08 million tonnes per annum, making it the largest integrated aluminium producer in Southeast Asia. The group has an extrusion capacity of 210,000 tonnes per annum.
In first half-2022 (H12022), Press Metal recorded impressive group net profit of RM830.2 million as compared to RM461.3 million in H12021 as revenue ballooned to RM7.93 billion from RM4.74 billion.
Press Metal said the group revenue and pre-tax profit in H12022 jumped by RM3.19 billion or 67.2 per cent and RM509.9 million or 76.7 per cent respectively mainly attributable to the higher metal price and production volume during the current year period.
The smelting segment was the top contributor to group turnover, generating RM6.51 billion, followed by extrusion segment (RM1.21 billion), refinery segment (RM187.1 million), contracting and other segments (RM18.99 million).
Press Metal said the group revenue in Q22022 rose by 51.8 per cent from a year ago. This drove after-tax and non-controlling interests (PATNCI) by 60.1 per cent to RM407.2 million from RM255.6 million in Q22021. The company said the strong profits were bolstered by expanded revenue and contributions from associate companies.
“The strengthening of the US dollar against Ringgit Malaysia has also contributed to the increase as the group’s revenue is mainly denominated in US dollar,” it added in explanatory notes to its financials.
Commenting on the latest financial results, Press Metal group chief executive officer Tan Sri Paul Koon said with the strong performance in H12022, coupled with sturdy cashflow, this has enabled the company to increase its dividends to 1.75 sen from 1 sen in the corresponding period of 2021 to shareholders.
“As we progress into the second half of the year, macroeconomic uncertainty and inflationary pressures are causing slowdown in demand momentum as consumers adopt a more cautious approach over the short term.
“However, aluminium market fundamentals should be able to sustain any aggressive challenges as soaring energy prices and power shortages are putting supply in check, especially in Europe. Several smelters have reported production curtailments or shutdowns in Europe and US, pressured by margin squeeze at the current aluminium price due to escalating products costs.
“In Asia, the extreme weather experienced by India and China is another supply risk for primary capacity as government seeks to prioritise the supply of electricity to households,” Koon said in a media release.
For the remainder of the year, he said Press Metal group will, in addition to improving production efficiency, continue to take advantage of the pockets of growth from various markets in the regional countries.
