KUALA LUMPUR: While Malaysia Smelting Corp
Bhd (MSC) returned to the black in the third quarter of 2023 from a net loss in the previous year, the company remains cautious amid fears of potential headwinds.
"MSC maintains strong resilience amid a challenging operating backdrop mired with ongoing geopolitical tensions, high inflation, and supply chain disruptions, among others.
"Against these external headwinds, we remain committed to pursuing our strategic plans to improve operational efficiencies, as we position the Group for continued success," said group CEO Datuk Patrick Yong in a statement
MSC is also looking forward to newer, more efficient technology at its Pulau Indah plant, which is on target for full commission.
According to Yong, the decommissioning of its smelting facility at Butterworth, Penang, is taking place in stages from 2024, which the group anticipates will yield cost savings of up to 30%.
In the third quarter of 2023, MSC recorded a net profit of RM11.82mil, as compared to a net loss of RM31.32mil in the same quarter in 2022.
The group posted an earnings per share of 2.8 sen in the current quarter as compared to a loss per share of 7.5 sen previously.
Revenue, meanwhile, was up to RM364.02mil in 3QFY23 from RM33.13mil in 3QFY22, as the average price of tin rose to RM123,800 per tonne from RM116,500 per tonne a year earlier.
MSC said net profit for its tin mining arm more than doubled to RM17.9mil in 3QFY23 as compared to RM8mil a year earlier, which included a one-off provision for legal case settlement of RM4.7mil.
However, the group's tin smelting segment was affected by an annual shutdown of the Top Submerged Lance furnace at Pulau Indah, which led to a net loss of RM2.7mil.
On a nine-month basis, the group's net profit was RM75.68mil, slightly higher than RM72.47mil in the comparative period in 2022.
Revenue was lower at RM1.03bil from RM1.11bil in the same 2022 period.
