KUALA LUMPUR (Aug 12): Malaysia Smelting Corp Bhd’s (KL:MSC) second-quarter net profit more than doubled year on year, helped by higher refined tin sales and prices, as well as improved efficiency from its mining and smelting operations, particularly at its facility in Pulau Indah, Selangor.
The tin miner and metal producer's net profit for the three months ended June 30, 2026 (2QFY2026) grew to RM34.02 million from RM13.95 million a year earlier, as quarterly revenue jumped 68.2% to its decade high of RM637.27 million, from RM378.96 million. No dividend was declared for the quarter under review.
For the six months ended June 30 (1HFY2026), the group's net profit more than tripled to RM76.95 million from RM21.67 million while revenue increased 46.1% to RM1.09 billion from RM748.7 million in the previous period, its bourse filing showed.
MSC said the stronger first-half performance was driven by higher refined tin sales volumes and a higher average tin price of RM200,700 per metric tonne, compared with RM140,900 a year earlier.
Closure of its Butterworth plant also allowed MSC to consolidate its smelting operations at the newer Pulau Indah facility, it said, improving operational efficiency.
“In addition to improved operational efficiency, the facility has a lower carbon footprint through its use of natural gas and renewable energy generated from rooftop solar panels,” said co-CEO Lam Hoi Khong in a statement.
Co-CEO Nicolas Chen Seong Lee highlighted that tin prices remained elevated amid supply constraints in major producing countries, including Indonesia, Myanmar and the Democratic Republic of the Congo.
Demand for tin will remain supported by applications in artificial intelligence (AI), data centres, semiconductors, photovoltaic panels and energy-transition technologies, Chen added.
In 1HFY2026, MSC's smelting segment returned to profitability from a loss in 1HFY2025, which the group attributed to savings from the Butterworth closure, as well as better returns from tin intermediates. The previous year's second-quarter smelting performance was also affected by a disruption to tin production following the gas pipeline fire at Putra Heights.
The group said it would continue to focus on raising mining output and productivity amid geopolitical tensions in West Asia and higher energy costs.
The group is also looking to improve recovery from lower-grade materials and assess potential mining joint ventures while maintaining cost controls and operational efficiency in its smelting operations.
Shares of MSC were up by five sen or 2.3% to RM2.22 on Wednesday’s market close, valuing the group at RM1.86 billion. Year-to-date, the stock has gained 41.4%.