Press Metal Aluminium Holdings’ revenue drops by 18.9% on lower aluminium prices; PBT up 1.2%

Press Metal Aluminium Holdings Berhad, the largest Aluminium smelter in South East Asia, has announced its second quarter financial results for the three months ended 30 June 2020. Revenue decreased by 18.9% to RM1.73 billion in 2Q FY20, from RM2.13 billion in 2Q FY19 on lower realised aluminium prices.

“However, we have existing hedges that partially locked in some favourable pricing and our average selling price in 2Q FY20 was higher than the average market price.”

Profit before tax (PBT) increased by 1.2% to RM124.92 million in2Q FY20, from RM123.47 million in 2Q YF19.

Group Chief Executive Officer Tan Sri Paul Koon stated: “The second quarter of this year was a very challenging and tumultuous period where the pandemic was at its height. With many countries seeing reduced economic activities and shutdowns in various industries, both aluminium demand and price were adversely impacted.

Over the months, the pandemic situation has improved which coincided with aluminium price recovering in late May and currently back at pre-COVID level. There are signs of recovery in global economic activities especially in China, where we have seen strong aluminium demand among other commodities. We believe that price is also supported by low interest rate environment and the US dollar weakness

We are continuously exploring new markets for our value-added products and will be expanding our presence in Southeast Asia due to its economic growth potential and proximity to our plants. Demand for value-added products from key market such as Europe is also expected to recover in the next few months.

We remain committed to execute our expansion as planned, targeting to commission our Phase 3 smelter in January 2021. This will increase our capacity by 42% from 760,000 up to 1,080,000 tonnes per annum. The construction of our 25% owned PT Bintan alumina refinery is also well in progress and we expect Phase 1 commissioning in 1Q21.”