Press Metal net profit jumps to RM283.33mil in Q3

KUALA LUMPUR: Bolstered by higher aluminium prices, Press Metal Aluminium Holdings Bhd recorded a net profit of RM283.33mil in the third quarter ended Sept 30, 2021, which was more than double the net profit of RM121.98mil in the same quarter a year ago.

Earnings per share rose to 3.51 sen compared to 1.51 sen in the previous corresponding quarter.

The group declared a dividend of one sen per share, bringing year-to-date payout to 2.75 sen a share.

In the quarter under review, the aluminium producer said revenue rose 55% to RM2.89bil on the back of the higher aluminium price and production output from its new Phase 3 Samalaju smelter, which achieved full commissioning in mid-October this year.

Meanwhile, contributions from the group's associate companies were significantly higher.

During the first nine months of 2021, the group's improved earnings performance was partially offset by an increase in operating costs stemming from higher raw material prices, increase in consumable prices and persistently elevated logistics cost.

It said the power rationing in China added to uncertainties to global supply chains and raw material prices, while the reduced workforce during the movement control order period had an impact on overall operating efficiency.

"We foresee that these operational challenges will continue to be present in the near term," it added.

Following the full commissioning of its Phase 3 Samalaju smelter in October, Press Metal is anticipating an increase in production volume in 2022 to fuel expansion into new markets with value-added products.

"We want to place high emphasis on strengthening our position within the low-carbon aluminium space while also accentuating the ESG culture into our people and throughout our operations.

"Barring unforeseen circumstance, the Board expects the Group to achieve satisfactory results this financial year," said the group.

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