KUALA LUMPUR (Aug 2): Malaysia Smelting Corp Bhd’s (KL:MSC) net profit for the second quarter ended June 30, 2024 (2QFY2024) plummeted 41.2% to RM16.72 million from RM28.45 million a year earlier, mainly dragged by the weaker performance of its tin smelting segment.

MSC’s tin segment recorded a profit before tax of RM6.2 million in the quarter under review, significantly lower than the RM21.6 million recorded in 2QFY2023. This decline was attributed to the annual re-bricking and scheduled maintenance of the top submerged lance furnace starting in mid-May, which led to lower refined tin output, smelting income and profit.

Earnings per share stood at four sen compared to 6.8 sen previously, according to the tin smelting and mining outfit's bourse filing. No dividend was declared for the quarter.

Revenue for the quarter under review rose 26% year-on-year (y-o-y) to RM410.8 million from RM327 million, lifted by higher average tin price. The average tin price stood at RM153,400 per metric tonne versus RM116,500 per metric tonne previously.

Due to the lower bottom line in 2QFY2024, MSC's net profit for the six-month period ended June 30, 2024 (6MFY2024) slid 45% y-o-y to RM35 million from RM63.9 million. Revenue increased by 16% to RM773.3 million from RM667.1 million previously.

Looking ahead, the group remains committed to pursuing strategic plans to improve its operational efficiencies.

"For our tin smelting arm, the phased decommissioning of the smelting facility at Butterworth, Penang is on track for full closure by 2025. As we shift the group’s smelting operations to the Pulau Indah smelter in Port Klang, we expect to enhance efficiency through reduced operational and manpower costs," MSC group chief executive officer Patrick Yong said in a statement.

Meanwhile, on the tin mining front, the group aims to boost daily output and productivity by using cost-effective technology, expanding mining activities and forming strategic partnerships.

"Through these initiatives, we are working towards building a strong foundation to ensure MSC’s long-term sustainable growth, positioning the group to meet future challenges and capitalise on emerging opportunities in the tin industry," Yong added.

Shares in MSC settled 13 sen or 5.04% lower at RM2.45 on Friday, valuing the company at RM1.03 billion.