KUALA LUMPUR (Feb 26): Press Metal Aluminium Holdings Bhd (KL:PMETAL), the largest aluminium smelter in Southeast Asia, saw its net profit jump 38.5% to RM445.27 million for the fourth quarter ended Dec 31, 2024 (4QFY2024), from RM321.39 million a year ago, primarily driven by lower net finance costs and higher contributions from associate companies.

This resulted in higher earnings per share of 5.4 sen for 4QFY2024, versus 3.9 sen for 4QFY2023.

Quarterly revenue was flat at RM3.56 billion, compared with RM3.53 billion for 4QFY2023.

The group declared a fourth interim dividend of 1.75 sen per share for FY2024, payable on March 28, bringing total dividends declared for the full year to RM576.77 million or 33% of the group's net profit.

Full-year net profit surged 44.9% to a record RM1.76 billion, compared with RM1.22 billion for FY2023, on the back of an 8% increase in revenue to RM14.91 billion — the group's highest-ever annual revenue — from RM13.8 billion in FY2023.

In a statement on Wednesday, Press Metal group chief executive officer Tan Sri Paul Koon Poh Keong said the US administration’s announcement of a 25% tariff on aluminium imports had sparked an initial market reaction, including higher aluminium prices and an increase in the US Midwest premium.

"This suggests that US consumers may face increased costs, as the country is a net importer of aluminium, and the supply gap still necessitates reliance on external sources. At this stage, it is too early to determine the long-term impact on global metal flows and regional pricing, as the market awaits further clarity. Nevertheless, our direct exposure to the US market remains minimal.

"On the other hand, we see growing opportunities for low-carbon aluminium producers in Southeast Asia, driven largely by alternative sourcing and manufacturing relocations to the region," he added.

In 2024, elevated alumina prices posed a significant challenge for aluminium producers like Press Metal. Although alumina prices have started to ease, risks persist, particularly pertaining to bauxite sourcing due to policy changes. In response, Press Metal is increasing its leverage of upstream alumina assets and strengthening its vertical integration capabilities to strengthen its resilience against market uncertainties and mitigate raw material price volatilities, aiming to optimise operating margins, according to Koon.

"By leveraging our low-carbon aluminium solutions, integrated production capabilities and efficient cost model, we are well positioned to capitalise on the growing aluminium market, enhance our competitiveness, and mitigate potential market distortions,” he said.

Press Metal shares closed down two sen or 0.4% at RM5 on Wednesday, giving it a market capitalisation of RM41.2 billion. The stock has risen 3.52% so far this year.