Press Metal Aluminium Holdings Bhd, an aluminum smelter and a prominent aluminium extruder in Southeast Asia has announced its first-quarter financial results for the three (3) months ended 31 March 2022 (“1Q FY2022”).
Revenue in 1Q FY2022 increased by 86.6% to RM3.92 billion as compared to RM2.10 billion in the corresponding quarter of the preceding year (“1Q FY2021”), at the back of expanded production volume and higher average aluminium prices Profit after tax and non-controlling interests (“PATNCI”) grew by 104.7% to RM421.02 million in 1Q FY2022 as compared to RM205.72 million in 1Q FY2021, bolstered by improved revenue and contribution from associate companies.
Together with the improved set of results, the board declared a higher dividend of 1.5 sen per share, payable on 27 June 2022.
In a Bursa Filing, it said that the Group’s revenue increased from RM2.10 billion in Q1 2021 to RM3.92 billion in Q1 2022, representing an increase of RM1.82 billion or 86.6%.
Substantial increase in the revenue was mainly due to the higher aluminum price and additional production output following the full commissioning of its Phase 3 smelting operations in October 2021.
Correspondingly, profit before tax (“PBT”) has also increased substantially from RM288.23 million in Q1 2021 to RM608.70 million in Q1 2022, showing an increase of RM320.47 million or 111.2%.
Significant increase in PBT was mainly attributable to the higher metal price, additional production output and higher profit sharing from its associated companies which principally engaged in the manufacturing of silicon, alumina and carbon anode.
Group Chief Executive Officer Tan Sri Paul Koon stated: “Our financial results represent a growth trajectory driven by expansion strategies across our value chain. We are committed to grow our market presence and further entrench our position in the region. 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.
On the supply front, persistently high energy prices in Europe have led to curtailment of aluminium supply which should lend support to aluminium prices. China is currently filling the supply gap in the western markets as their domestic market activities faced temporary slowdown due to implementation of 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 USD2.3 trillion infrastructure plan to spur the economy. With the re-opening of economies and heightened manufacturing activities in the region, we believe that Southeast Asia, being an export hub, should see additional demand for raw materials such as aluminium.
Leveraging on our position as the largest aluminium smelter in this region, we are well positioned to seize this opportunity as customers prefer to avoid uncertainties stemming from logistic disruptions and trade tensions.”
