Press Metal 1Q net profit jumps to RM408.03mil from RM281.97mil a year ago

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

KUALA LUMPUR: Southeast Asia’s largest aluminium smelter Press Metal Aluminium Holdings Bhd's (PMetal) net profit jumped to RM408.03 million in the first quarter ended March 31, 2024 (1Q 2024) against RM281.97 million in 1Q 2023.

Its revenue rose 17.7 per cent to RM3.61 billion from RM3.07 billion in the same quarter last year due to optimised sales volume and strengthening of the US dollar, it said in a filing with Bursa Malaysia.

Group chief executive officer Tan Sri Paul Koon said the company started 2024 on a positive note following an upturn in economic activities, especially in Asia, which drove a higher demand for aluminium.

"Significant de-stocking was completed last year, which led some manufacturers to replenish inventory, while the higher premiums since the first quarter underscored a more promising demand outlook amidst tight supply," he said.

He said the US-China trade war also resulted in the implementation of tariffs and the imposition of restrictive policies. While this complicates the supply chain and metal flow, PMetal will seek to leverage these shifting dynamics to its advantage.

"By recalibrating our strategies, expanding into new markets and aligning with manufacturing relocations outside China, we are well-positioned to capture emerging opportunities," said Koon.

Additionally, he said the company's emphasis on low-carbon aluminium production positions PMetal favourably to capitalise on shifting buyer preferences away from less sustainable sources.

Despite subdued construction and property sectors, global investments in renewables and electric vehicles continue to drive the demand for aluminium.

As climate challenges intensify, accelerating green initiatives is crucial.

"PMetal remains committed to providing sustainable aluminium products, contributing towards a greener future," he added.

In a separate filing, PMetal has proposed a first interim single-tier dividend of RM1.75 sen per share for the financial year ending Dec 31, 2024.

Book closure and payment dates are June 18 2024 and June 28, 2024, respectively.

In a separate filing, PMetal has proposed a first interim single-tier dividend of RM1.75 sen per share for the financial year ending Dec 31, 2024, with ex-date on June 14 and payment date on June 28, 2024. - Bernama

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