Press Metal net profit dips to RM306.1mil in 3Q


An aluminium smelter owned by Press Metal in Samalaju Industrial Park

PETALING JAYA: Press Metal Holdings Bhd will be strategically fortifying its position, as it navigates the potential challenges that may arise.

In a filing with Bursa Malaysia, the aluminium company said it remains resolute in its commitment to financial discipline and optimisation, amidst dynamic market complexities due to trade tensions, geopolitical concerns, and a high-interest environment.

For the third quarter ended Sept 30, 2023, Press Metal’s net profit dipped to RM306.12mil from RM315.8mil in the previous corresponding period, while revenue was lower at RM3.4bil from RM3.85bil a year earlier.

The company said the lower revenue was mainly due to the softening of metal prices in the third quarter of 2023.

Basic earnings per share stood at 3.72 sen versus 3.83 sen previously.

For the nine-months period ended Sept 30, 2023, Press Metal’s net profit dropped to RM893.88mil from RM1.15bil in the previous corresponding period, while revenue slipped to RM10.27bil from RM11.77bil a year earlier.

The company declared a third interim dividend of 1.75 sen per share payable on Dec 29, 2023, representing a payout ratio of 47% of Patami.

Press Metal said the market appears to be consolidating at the present level, fuelling its cautious optimism on increasing market activities, moving forward.

“We anticipate the demand for aluminium to improve once interest rates embark on a reversal course and global economies recover, further catalysed by manufacturing relocation to this region.

“While there is a general slowdown in the real estate sector, we see growing prospects in infrastructure spending, solar manufacturing and the electric vehicle sectors, particularly from China.

Press Metal said these sectors are expected to drive demand for aluminium, offsetting any declines from other industries.

“In tandem with the accelerating pace of decarbonisation-related investments globally, we will consider selective high-growth projects or opportunities which complement our existing businesses.

“We are confident of the prospects of the aluminium industry and we are committed to advancing our position to ensure long-term success and value for all stakeholders.”

Barring unforeseen circumstances, Press Metal said it expects to achieve a satisfactory performance for 2023.

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Press Metal , aluminium

   

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