Press Metal Aluminium Holdings Berhad (PMETAL 8869) announced its fourth quarter financial results for the three months ended 31 December 2022 (4Q FY2022).
Revenue in 4Q FY2022 increased by 16.4% to RM3.92 billion compared to RM3.37 billion in the same quarter of the preceding year (“4Q FY2021”). Despite lower aluminium prices, revenue for this quarter was supported by higher volume sold and a stronger US dollar. Profit after tax and minority interests (PATAMI) increased by 5.8% to RM272.21 million.
On a full-year basis, revenue for the twelve months ended 31 December 2022 (“FY2022”) increased by 42.7% to RM15.69 billion compared to RM11.00 billion in the preceding year while PATAMI for FY2022 closed at RM1.42 billion. The company also declared a fourth interim dividend of 1.75 sen per share payable on 31 March 2023, bringing the total dividend declared in respect of FY2022 to RM556.17 million or approximately 39% of PATAMI.
Commenting on the results, Group CEO Tan Sri Paul Koon stated, “For FY2022, Press Metal has delivered a satisfactory profit growth despite being faced with elevated raw material prices and high freight costs. Our sales volume increased year-on-year as this was the first full year of commissioning our Phase 3 Samalaju smelter. In addition, the contribution from our associate companies has more than doubled in FY2022.
Going into 2023, we believe supply tightness will persist especially in Europe due to the scarcity of renewable energy and the deficiency of reliable energy supply amid ongoing Russia-Ukraine tensions. Although China has increased production capacity last year, weather constraints continued to curtail output intermittently, posing a risk to global supply.
For current year demand, we are cautiously optimistic. The fear of an earlier predicted deep recession in Europe has eased, and China’s re-opening has boosted optimism on recovery which may push primary demand higher. The current low inventory levels and a resurgence of activities from China should underpin a stronger aluminium price performance,” he added.
