Malaysia Smelting Corporation Berhad has reported its financial results for its fourth quarter and full year, with a revenue of RM1.4 billion for FY23 compared to RM1.5 billion in the prior year. During the year, the Group recorded higher sales of refined tin, offset by lower average tin prices, which fell 13.6% to RM118,100 per metric tonne, as compared to RM136,700 per MT in FY22. Meanwhile, the Group’s net profit attributable to owners of the company amounted to RM85.1 million, against RM98.3 million in FY22.
The tin smelting segment posted a net profit of RM36.0 million in FY23, from a net loss of RM5.5 million in FY22. The earnings turnaround was on the back of higher earnings from increased sales of refined tin derived from tin intermediates, as well as higher sales of by-products, and smelting revenue.
Net profit for the Group’s tin mining operations amounted to RM64.4 million, against RM95.1 million a year ago. While tin production remained stable in FY23, financial performance was impacted by less favourable tin price movements during the year.
For 4QFY23, MSC recorded a net profit of RM9.4 million, on the back of revenue of RM404.6 million. The tin smelting arm posted a net loss of RM2.2 million, as compared to a net profit of RM19.2 million in the preceding year’s corresponding quarter. The slower performance was primarily due to foreign exchange loss during the quarter, as well as the absence of sale of refined tin from processed tin intermediates and sale of by-products. As for the tin mining segment, net profit rose by 30.0% year-on-year to RM11.9 million in 4QFY23, mainly attributable to comparatively higher tin prices, and increased tin production quantity during the quarter. Average tin prices rose 18.2% to RM116,000 per MT in 4QFY23, up from RM98,100 per MT in 4QFY22.
Commenting on the Group’s performance, Dato’ Dr. Patrick Yong, Group Chief Executive Officer of MSC said, “FY2023 presented a challenging operating backdrop with high interest rates, inflationary pressures, compounded by prolonged geopolitical tensions from the conflict in the Middle East, and the Russia-Ukraine war. Despite external headwinds, we delivered a resilient set of results in FY2023.”
For FY23, the Board has proposed a final single-tier dividend of 7 sen per share for the quarter under review, subject to shareholders’ approval at the Group’s forthcoming Annual General Meeting. Total dividend per share for FY23 amounts to 14 sen, representing a 69% payout based on FY23 net profit as compared to previous years payout of between 23% to 30%.
