Malaysian aluminium producer Press Metal’s net profit soars to RM 283 million in Q3

The Malaysia-based world-class aluminium producer, Press Metal Aluminium Holdings Bhd, on the account of higher aluminium prices, books a net profit of RM283.33 million in Q3 ended Sept 30, 2021. This was more than double the net profit of RM121.98 million when compared with the same quarter the previous year.

The aluminium manufacturer stated that the revenue soared by  55% to RM 2.89 billion on the shoulder of the higher aluminium price and production output from its new Phase 3 Samalaju smelter, which attained full commissioning in mid-October of 2021. Concurrently, the group’s associate arms also contributed significantly higher premiums.

In the initial nine months of 2021, the metal company’s enhanced earnings performance was partially counterpoised by a rise in operating costs restrained from higher raw material prices, surge in consumable prices and persuasion of inflated logistics cost.

Press Metal stated: “The power rationing in China added to uncertainties to global supply chains and raw material prices, while the reduced workforce during the movement control order period had an impact on overall operating efficiency.”

"We foresee that these operational challenges will continue to be present in the near term," it added.

The Malaysian aluminium giant anticipates an upswing in production volume in 2022 to propel entry and expansion into fresh markets with value-added products following the full commissioning of its Phase 3 Samalaju smelter in October.

Furthermore, the group said: "We want to place a high emphasis on strengthening our position within the low-carbon aluminium space while also accentuating the ESG culture into our people and throughout our operations.

"Barring an unforeseen circumstance, the Board expects the Group to achieve satisfactory results this financial year.”