16 JUNE 2017AlCircle.com
Press Metal expects to boost earnings in FY 2017 on the back of strong aluminium prices
Edited by : Beethika Biswas
2 min read
<p>Press Metal Bhd, the largest aluminium smelting firm in Indonesia expects stronger financial performance for the year ending Dec 31, 2017 (FY17) driven by improved aluminium prices and increased output. The group is expecting better growth in its bottom line and top line supported by higher aluminium price and a rise in the value of the US dollar.</p>
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<p>“We believe the price of aluminium this year will be higher than last year, and we are positive about the production output, which is going to be more,” said chief executive officer Datuk Paul Koon Poh Keong.</p>
<p> “If the US dollar strengthens it will definitely help us. We are comfortable with this kind of range (RM4.25 to RM4.26 against the dollar) and of course if it is at RM4.4 it will be very good for us.” Koon said to the media after the group’s annual general meeting on June 15.</p>
<p>Koon also expected the aluminium price to be well above the 2016 average of US$1,700 per tonne.</p>
<p>Aluminium price, according to him, grew primarily due to the Chinese government’s move to cut alumina and aluminium production capacity amid on environmental concerns. Since demand for aluminium is expected to grow at a healthy pace, it would put pressure on the supply side keeping price high, he added.</p>
<p>He said that his positive projection would be supported by the benefit of full production from their three smelter lines [in Sarawak] — Mukah smelter, Samalaju Phase 1 and Phase 2 — of 760,000 tonnes capacity, and higher value-added products output, along with better currency exchange rate.</p>
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<p>Koon also added that Press Metal is continually exploring new markets both in the domestic and international operations supported by a careful financial planning.</p>
<p>It is noteworthy that Press Metal’s net profit jumped 56.6% to RM148.05 million for Q1 FY17 from RM94.56 million in Q1 FY2016. Revenue too grew 56.7% to RM2.02 billion from RM1.29 billion, encouraging positive projection for the current year.</p>
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