Press Metal reports RM282mil net profit in 1Q

Press Metal Aluminium Holdings Bhd group chief executive officer Tan Sri Paul Koon

KUALA LUMPUR: Press Metal Aluminium Holdings Bhd anticipates intermittent disruptions in global aluminium supply to persist, due to high energy costs and challenging weather conditions.

It said a resurgence in the economy or an acceleration of green industrialisation could rapidly reverse the current weakness.

The largest Aluminium smelter in South-East Asia noted that the price of aluminium had softened in recent months due to uncertain macroeconomic conditions.

However, it said the low inventory levels reported by several metal exchanges and ongoing supply curtailments since last year indicate that there is still supply tightness of physical metal in the current market.

“Press Metal continues to pursue opportunities while maintaining financial resilience. Our financial health has been consistently strengthening, particularly over the past few quarters, as evident through our higher cash position, reduced gearing, and healthy profitability.

“Building on this foundation, Press Metal will continue engaging and collaborating with strategic partners to enter new markets or embark on new ventures with the aim of achieving sustainable growth and success,” group chief executive officer Tan Sri Paul Koon said in a statement.

“We are steadfast in our commitment towards ESG principles. Our strength, status and accolades in this area will differentiate Press Metal as a responsible producer committed to the well-being of all stakeholders and the preservation of a sustainable environment," he added.

Barring unforeseen circumstances, its board expects the group to achieve satisfactory results for the financial year ending Dec 31, 2023 (FY23).

In the first quarter ended March 31, Press Metal reported a 33% lower net profit of RM282mil compared with RM421mil in the same corresponding quarter last year.

Revenue fell 21.6% to RM3.07bil against RM3.92bil a year ago primarily due to softening of metal selling prices.

Earnings per share fell to 3.44 sen from 5.21 sen last year.

Press Metal’s board of directors has approved a first interim single tier dividend of 1.75 sen per ordinary share, amounting to RM144.2mil for FY23, representing a payout ratio of 51%.

The book closure and payment dates for the dividend are on June 15 and June 30 respectively.

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Press Metal , aluminium , dividend , Paul Koon


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