KUALA LUMPUR (Feb 27): Malaysia Smelting Corp Bhd (KL:MSC) logged an over threefold surge in net profit for the fourth quarter, on higher tin prices.

Net profit for the three months ended Dec 31, 2024 (4QFY2024) swelled 222% to RM30.18 million, from RM9.37 million in the same period a year earlier, according to the tin miner and refiner in a bourse filing on Thursday.

Quarterly revenue increased 10.8% to RM448.45 million from RM404.63 million in 4QFY2023, lifted by the higher tin prices — RM133,700 per ton versus RM116,000 — as well as higher sales of refined tin derived from processed tin intermediaries.

MSC proposed a final dividend of seven sen per share for FY2024. This will bump up the total dividend payout for the full year to 31 sen per share.

However, MSC’s annual net profit slipped 6.6% to RM79.42 million, compared with RM85.05 million in FY2023, while annual revenue grew nearly 18% to RM1.69 billion, versus RM1.44 billion a year ago.

The lower annual earnings despite higher revenue were attributed to a 29% year-on-year decrease in pre-tax profit for the tin smelting segment, due to lower incoming feed because of China’s stockpiling of tin ore, foreign exchange loss, and lower sales of tin intermediary-derived refined tin.

Annual net profit was further burdened by higher finance costs and income tax expenses.  

Entering FY2025, MSC said the group remains cautious, with emphasis placed on competitiveness, operational efficiencies and potential new business developments in the smelting and mining segments.

It takes a cautious position in FY2025, citing major economies’ heightened policy uncertainty, adverse trade policy, as well as sanctions and tariffs imposed as key downside risks to the economic outlook.

Other downside risks listed include escalating conflicts, geopolitical tensions and inflationary concerns, the group added. “These factors affected the tin supply chain in 2024, and it remains to be seen what the effect will be moving forward,” MSC noted.

Speaking on its operational efficiency plans, MSC noted the successful commissioning of its Pulau Indah plant's operations. The next step will be the planned closure of its old Butterworth plant in the near term.

“The group expects approximately 30% cost savings from the planned closure, while benefiting from higher efficiencies of the Pulau Indah plant with lower operational and manpower costs, and energy saving initiatives, while reducing the overall carbon footprint,” it added.

For the tin mining segment, the group said it will continue to focus on improving daily mining output and overall productivity.

Shares in MSC went up three sen to close at RM2.25 on Thursday, valuing the group at RM945 million.