Press Metal Aluminium Holdings Bhd, the largest Aluminium smelter in South-East Asia has announced its third-quarter financial results for the three (3) months ended 30 September 2021 (3Q FY2021).
Revenue in 3Q FY2021 increased by 55.0% to RM2.89 billion as compared to RM1.86 billion in the same quarter of the preceding year (3Q FY2020).
Profit after tax and non-controlling interests (PATNCI) increased to RM283.33 million in 3Q FY2021 compared to RM121.98 million in 3Q FY2020. The performance in this quarter was supported by a higher average aluminium price environment and increased production output.
On a year-to-date basis, revenue for the nine months up to 30 September 2021 (9M FY2021) increased by 40.7% to RM7.63 billion compared to RM5.42 billion while PATNCI for 9M FY2021 closed at RM744.63 million. The company also declared a third interim dividend of 1.0 sen per share payable on 30 December 2021.
Commenting on the results, Group Chief Executive Officer Tan Sri Paul Koon stated: “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. As a result, aluminium prices remained buoyant during the quarter.
However, the positive sentiments from higher aluminium prices were partially offset by the increase in our operating costs stemming from higher raw material prices, increase in consumable prices and persistently elevated logistics costs.
Power rationing in China poses further uncertainties to global supply chains and raw material prices. On top of this, we were also faced with a reduced workforce during the MCO period which had an impact on our overall operating efficiency. We foresee that these operational challenges will continue to be present in the near term.
For the period of 3Q FY2021, the commissioning of our Phase 3 Samalaju smelter (P3) progressed into its final stages after an earlier declaration in our ramp-up due to restrictions and precautionary measures to safeguard our workers’ health. Full commissioning of our Phase 3 smelter was achieved in October. Moving forward into 2022, with an anticipated increase of production volume, we target to expand into new markets for our value-added products. We want to place a high emphasis on strengthening our position within the low-carbon aluminium space while also accentuating the ESG culture into our people and throughout our operations.”