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25 FEBRUARY 2021 AL CIRCLE

Press Metal Aluminium’s Q4 2020 revenue declines 3.7% due to the lower extrusion products sales

EDITED BY : HEENA IQBAL 2MINS READ

Press Metal Aluminium Holdings Bhd announced results for the fourth quarter and full year of 2020 The Group’s revenue was RM2.12 billion in Q4 2020 as compared to RM2.20 billion in Q4 2019, a decrease of RM81.00 million or 3.7% due to the lower extrusion products sales in Q4 2020. Profit before tax (PBT) was RM208.72 million for the quarter, indicating an increase of RM28.95 million or 16.1% year-on-year on lower raw material costs and finance costs incurred in Q4 2020.

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On a full year basis, revenue stood at RM7.54 billion for FY2020, a decline of 14.4% compared to RM8.80 billion in FY2019 due to the softer aluminium prices in the first half of 2020 during the height of the pandemic.

PBT grew by 3.0% to RM650.17 million as compared to RM631.22 million for FY2019 mainly due to cost benefits derived from lower alumina and carbon anode prices.

“During the fourth quarter, global industrial production continued to recover from its contraction earlier in the year. Weaker US dollar, improving manufacturing data, optimism surrounding vaccine rollouts and further US economic stimulus package continued to support commodity prices. Spurred on by all these positive sentiment, aluminium price rallied and currently trades above the USD 2,000/tonne levels. We aim to continue our prudent practice of forward hedging by partially locking-in aluminium prices at favourable levels to minimise our downside risks,” Press Metal said.

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“With its outstanding recyclability feature, we believe aluminium will be one of the most preferred metals for industries of the future such as electric vehicles, solar energy infrastructure, railway transportation and Ultra High Voltage (UHV) transmission lines.”

“We have much to look forward to in 2021. Our Phase 3 smelter commenced production in late December 2020 and we anticipate to operate in full capacity come the second half of 2021. As the pandemic is not fully behind us, we remain vigilant in safeguarding our operations and the health and safety of our employees.”


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EDITED BY : HEENA IQBAL 2MINS READ

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