Press Metal Aluminium Holdings Bhd, the largest Aluminium smelter in Southeast Asia started its financial year 2018 with firm first quarter results amidst fluctuation in raw material costs and weakening U.S. Dollar.
Revenue for the quarter closed at RM2.125 billion, a 9.9 per cent increase from Q1FY17 due to higher aluminium prices.
Profit before tax (PBT) rose to RM210.2 million as compared to RM199.3 million in the similar quarter of the preceding financial year.
PBT was RM200.7 million in Q4FY17. The company also declared dividend of 1.5 sen per share.
The financial performance of the first quarter would have been stronger if not because of prolonged high carbon prices and weakening U.S. Dollar.
However, the Company expects a reversal of high raw material prices in the coming quarters.
Its group chief executive officer, Tan Sri Paul Koon said “We are pleased with our results despite headwinds in the first quarter.
“We recognise that there will be continuous shifts and reactions in global aluminium markets caused by unsettled development from U.S. sanctions.”
He added recent production volume disruption from Brazil has caused sudden spike in alumina prices.
“Our management is closely monitoring the changing market landscape and has control measures in place, to respond to price volatilities on both aluminium and raw material fronts.
“Such external shocks have proven the resilience of aluminium prices which could benefit producers like us and looking forward, we are focusing on streamlining our acquisition of Leader Universal Aluminium and expanding our value-added capacity,“ he concluded adding that the group are confident that they will meet the growth target they set for themselves this year.