Press Metal Aluminium Holdings Berhad (PMETAL-8869), the largest Aluminium smelter in South East Asia closed its nine months ended 30 September 2018 with satisfactory results amidst fluctuation in both aluminium price and raw material costs.
The revenue increased by 15.5% to RM6.94 billion compared to RM6.01 billion in the same period of the prior year. The increase was mainly due to higher metal price in the previous quarters as well as revenue contribution from Leader Universal Aluminium Sdn Bhd, which was acquired in March 2018.
Net profit attributable to shareholders increased to RM473.6 million, an increase of 4.6% compared to the same period in previous year. The higher profit is partly aided by proceeds from insurance settlement. The financial performance would have been stronger if not because of higher raw material prices.
Commenting on this result, Group Chief Executive Officer Tan Sri Paul Koon commented: “We have delivered another satisfactory set of results amidst continued external uncertainties with the on-going trade tensions. The outlook remains challenging due to raw material supply disruptions arising from the on-going curtailment of alumina production in Brazil.”
“Our recently announced proposed acquisition of 50% equity interest in Japan Alumina Associates (Australia) Pty. Ltd. is part of our strategy to secure a reliable supply of alumina, our key raw material. JAA gives us access to approximately 230,000 metric tonnes or 5% of total alumina produced from the Worsley Alumina Project, which is one of the world’s largest, longest life and lowest cost alumina producers.”
JAA is the company’s second venture to strengthen ourselves vertically after its investment in a joint venture with Sunstone Development Co., Ltd in China for the manufacturing of pre-baked carbon anodes, which is another key consumable in its smelting activities. Sunstone has begun commissioning its manufacturing operations and is expected to make its maiden delivery in the first quarter of 2019.
“We are close to achieving our targeted 50% value-added contribution to our total sales this year. With our smelters operating at full capacity, we intend to further grow our value-added contribution to 60% by 2019. This will further enhance our margin and strengthen our position directly with end users.”