Press Metal Aluminium’s 9M FY18 revenue up 15.5% on higher aluminium price

Press Metal Aluminium Holdings Berhad, the largest Aluminium smelter in South East Asia, closed its nine months ended 30 September 2018 (9M FY18) with satisfactory results amidst fluctuation in both aluminium price and raw material costs. 

The company’s revenue in 9M FY18 increased 15.5% to RM6.94 billion, from RM6.01 billion in the same period previous year. The increase was mainly due to higher metal price and the completion of the acquisition of Leader Universal Aluminium Sdn. Bhd.

Net profit attributable to shareholders increased 4.6% YoY to RM473.6 million. 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.

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.” 

Tan Sri Paul added “Our recently announced proposed acquisition of 50% equity interest in Japan Alumina Associates (Australia) Pty. Ltd. ("JAA") 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 our second venture to strengthen ourselves vertically after our investment in a joint venture with Sunstone Development Co., Ltd in China (“Sunstone”) for the manufacturing of pre-baked carbon anodes, which is another key consumable in our smelting activities. Sunstone has begun commissioning its manufacturing operations and is expected to make its maiden delivery in the first quarter of 2019.”

The company is close to hitting the 50% target on value-added production and will further grow to 60% by 2019. This will further enhance its margin and strengthen its position directly with end users.