KUALA LUMPUR (Feb 24): Press Metal Aluminium Holdings Bhd achieved record high annual revenue and annual net profit for the second consecutive year.

The aluminium smelter posted annual net profit of RM1.42 billion and record revenue of RM15.69 billion in the financial year ended Dec 31, 2022 (FY2022) as sales volume soared year-on-year, compared with net profit of RM1 billion and record revenue of RM11 billion in FY2021.

The company declared a fourth interim dividend of 1.75 sen per share (4QFY21: one sen per share), bringing its total dividend for FY22 to 6.75 sen per share (FY21: 3.75 sen per share).

Press Metal attributed the higher sales from the first full year of the commissioning of its Phase 3 Samalaju smelter, which has an additional 42% smelting capacity. It added that contribution from its associate companies had more than doubled in FY2022, according to its bourse filing.

For the fourth quarter ended Dec 31, 2022 (4QFY22), its net profit grew 5.8% to RM272.2 million from RM257.3 million a year ago while revenue grew 16.4% to RM3.92 billion from RM3.37 billion.

“Despite the lower metal selling price during the quarter, the increase in revenue was mainly due to higher quantity sold and the strengthening of the US dollar currency,” it said.

Earnings per share for 4QFY22 was higher at 3.3 sen from 3.19 sen in the previous corresponding period.

Going into 2023, Press Metal believes supply tightness will persist especially in Europe due to the scarcity of renewable energy and the deficiency of reliable energy supply amid ongoing Russia-Ukraine tensions.

“Although China has increased production capacity last year, weather constraints continued to curtail output intermittently, posing a risk to global supply,” it highlighted.

Nevertheless, the company said it is “cautiously optimistic” of current year demand as the fear of an earlier predicted recession in Europe has eased. It said China’s reopening has also boosted optimism on recovery which may push primary demand higher.

“The current low inventory levels and a resurgence of activities from China should underpin a stronger aluminium price performance. The structural changes brought about by the curtailment of smelters in the west and also the consequences of the Russia-Ukraine war have opened up an opportunity for us to strengthen our position further in the western market,” Press Metal said.

It also said the company is poised to benefit from green industries including electric vehicles, renewable energy, packaging and consumer products with its low carbon content production.

“Barring unforeseen circumstances, the board expects the group to achieve a satisfactory result for FY23,” Press Metal said.

Shares of the company fell seven sen to RM5.20 on Friday, bringing it a market capitalisation of RM42.85 billion. Year to date, the stock has increased 6.12%.