Prestar returns to profit in Q2, but Covid-19 curbs weigh


Managing director Datuk Toh Yew Peng says the iron and steel sector are still not in full operation due to lockdown measures imposed thus affecting the demand and supply of steel products.

KUALA LUMPUR: Steel pipe maker Prestar Resources Bhd said strong demand, coupled with higher prices in April and May boosted its earnings in the second quarter, but growth was stunted by the lockdown in June.

The company reported a net profit of RM19.2mil in the three-month ended June 30 compared with a loss of RM2.9mil made a year ago.

Revenue surged to RM124.5mil from RM53.3mil previously.

“The increase in profit and revenue were mainly due to better sales margin resulting from higher demand on the products and services of all business segments of the Group as well as the continued rising trend of the steel price," managing director Datuk Toh Yew Peng said in a statement today.

“However, the robust growth was hampered when total lockdown - Full MCO was imposed since June 1,” he added.

With the local iron and steel industry still affected by the Covid-19 restrictions, Toh expects the demand and supply situation in the industry to remain challenging.

“This has also put pressure to the steel price, which is expected to continue on an upward trend. Locally, iron and steel sector are still not in full operation due to lockdown measures imposed thus affecting the demand and supply of steel products," he said.

“The Board expects this trend may continue for the rest of this financial year and adopt a cautious and pragmatic approach to meet its customers demand as well as ensuring efficient management of its supply chain and working capital," he added.

Meanwhile, Prestar is extending its collaboration with Murata Machinery, Ltd (Japan) for the supply of the automated storage and retrieval system (ASRS) racking system.

It said Murata is one of the largest designers and manufacturers of material handling systems in Japan.

On Aug 17, its unit Prestar Storage System Sdn Bhd had signed a supplemental manufacturing partnership agreement with Murata’s logistic and automation division to include another nine of the latter’s subsidiaries.

The subsidiaries are in the US, China Europe, India, Thailand, Singapore, Vietnam, Taiwan and Hong Kong.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Prestar Resources , steel

   

Next In Business News

Nestle again nudges 2022 sales outlook higher
Oil jumps on hopes for easing in China's COVID controls
UMW Q3 net profit rises to RM100.7mil
Eversendai 3Q net loss widens to RM96.3mil
MyEG's net profit nearly doubles to RM150.7mil in Q3
MAHB's 3Q net loss narrows to RM9mil
Alliance Bank on track to achieving strategic priorities
Most Asian currencies hold firm against dollar, ringgit declines
Crypto exchange Bitfront shuts down
RHB Bank records net profit of RM700.48mil in Q3

Others Also Read