Press Metal Aluminium’s Q3 revenue down by 12.2% due to Covid-19 pandemic

Press Metal Aluminium reported results for the third quarter of 2020. The Group’s revenue stood at RM1.86 billion in Q3 2020, a decrease of RM0.26 billion or 12.2% from RM2.12 billion in Q3 2019 due to the impact of Covid-19 pandemic.

The Group reported a profit before tax of RM172.92 million in Q3 2020, from RM168.94 million in Q3 2019.  That was up by RM3.98 million or 2.4% mainly attributable to the favourable pricing of the Group commodity hedges, lower alumina and carbon anode prices as well as lower finance costs.

In the nine months period, the Group’s revenue was lower by RM1.0 billion or 15.6% to RM5.42 billion due to the softening of metal price as a result of Covid-19 epidemic. Profit before tax for 9M 2020 came in at RM441.45 million, down RM6.53 million or 1.5% from RM447.98 million last year.

“Following the re-opening of economies after the global lockdown, we see positive trends in aluminium demand as different industries begin their recovery from the lows in the first half of this year. We observed improved demand from key end user industries such as the automotive sector and construction sector where manufacturers for these industries were holding low inventory,” the company said.

Press Metal’s plan to commission the Phase 3 smelter in January 2021 is on-track. This will increase capacity by 42% from 760,000 up to 1,080,000 tonnes per annum.

“This expansion is timely as aluminium price has strengthened by more than 40% over the last few months and we see that the world is looking at further economic recovery in 2021. The construction of our 25% owned PT Bintan alumina refinery is also well in progress and we expect Phase 1 commissioning in 1Q 2021.”