KUALA LUMPUR: Malaysia Smelting Corp
Bhd (MSC) said it is staying the course in executing its strategic plans to streamline operations and enhance efficiencies.
According to MSC group CEO Datuk Patrick Yong, the group experienced a challenging operating backdrop in FY23 with high interest rates, inflationary pressures and geopolitical tension from the conflict in the Middle East and Russia-Ukraine war.
"Despite external headwinds, we delivered a resilient set of results in FY23," he said in a statement.
He added that the group expects to register improved operational efficiencies and cost savings of about 30% after moving its smelting operations to the Pulau Indah smelter.
Starting this year, it will be decommissioning its Butterworth smelter in stages.
Meanwhile, MSC is also focused on increasing the daily production of its mining business and overall mining productivity via exploring new tin resources and expanding its mining activities.
In the fourth quarter ended Dec 31, 2023, MSC posted a net profit of RM9.37mil, which was a steep decline from RM25.84mil in the same quarter in 2022, representing an earnings per share of 2.2 sen compared to 6.2 sen.
The group said its tin smelting arm posted a net loss of RM2.2mil as compared to a net profit of RM19.2mil in the preceding year's corresponding quarter due primarily to foreign exchange loss and the absence of sale of refined tin from processed tin intermediaries and sale of by-products.
The group reported revenue of RM404.63mil against RM391.15mil in the comparative quarter.
Over the full year, MSC's net profit came to RM85.05mil as compared to RRM98.31mil in FY22, while revenue was RM1.44bil against RM1.5bil in the previous year.
The board of directors proposed a final single-tier dividend of seven sen per share, subject to shareholders' approval, which would bring total payout in 2023 to 14 sen or 69% payout.
