Press Metal Aluminium Holdings Bhd (Press Metal) posted slightly lower profit after tax and minority interests (Patami) for 3Q FY2023, with 3% YoY decline at RM306.1 million for the quarter.
In a statement today (Nov 28), the aluminium smelter said this is due to lower raw material and logistics costs, coupled with higher contributions from associates partially mitigated the impact of softened metal prices.
Correspondingly, for the quarter under review, revenue was moderated, but still posted a decline of 11% to RM3.44 billion from RM3.85 billion in the corresponding quarter of the preceding year (3Q FY20, attributed to the easing of metal selling prices.
“Regardless, we continue to produce and sell based on our optimal capacity. With this set of results, the company declared a third interim dividend of 1.75 sen per share payable on 29 December 2023, representing a payout ratio of 47% of Patami,” it said.
Group chief executive officer Tan Sri Paul Koon said amidst dynamic market complexities due to trade tensions, geopolitical concerns, and a high-interest environment, Press Metal is resolute in its commitment to financial discipline and optimisation.
“We are strategically fortifying our position, poised to navigate any challenges that may arise,” he said.
Having said this, Koon said the market appears to be consolidating at the present level, fuelling the group’s cautious optimism on increasing market activities moving forward.
“We anticipate the demand for aluminium to improve once interest rates embark on a reversal course and global economies recovery, further catalysed by manufacturing relocation to this region.”
While there is a general slowdown in the real estate sector, he said there growing prospects in infrastructure spending, solar manufacturing and the electric vehicle (EV) sectors, particularly from China, which is expected to drive demand for aluminium.
“This could offset any declines from other industries. In tandem with the accelerating pace of decarbonisation-related investments globally, we will consider selective high-growth projects or opportunities which complement our existing businesses.
“We are confident of the prospects of the aluminium industry and we are committed to advancing our position to ensure long-term success and value for all stakeholder,” he added.
