However, the Southeast Asia region’s leading aluminum producer saw its revenue slipping to RM1.86 billion from RM2.12 billion previously mainly due to the impact of COVID-19 disruptions beginning in March 2020 which had significantly affected the aluminium selling price.
In a filing with Bursa Malaysia today, Press Metal attributed the better profit mainly to the favourable pricing of the group’s commodity hedges, lower alumina and carbon anode prices, as well as lower finance costs.
For the nine-month period, its net profit declined to RM314.61 million from RM339.5 million in the same period last year while revenue was also lower at RM5.42 billion versus RM6.43 billion previously.
Moving forward, the company said it expected positive trends in aluminium demand as different industries began their recovery from the lows in the first half of this year following the re-opening of economies after the global lockdown.
"We observed improved demand from key end-user industries such as the automotive sector and construction sector where manufacturers for these industries were holding low inventory,” it added.
Press Metal said its plan to commission the Phase 3 smelter in January 2021 was on track, which would increase its capacity by 42 per cent from 760,000 up to 1.08 million tonnes per annum.
"This expansion is timely as aluminium price has strengthened by more than 40 per cent over the last few months,” the company said.
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