PETALING JAYA: Malaysia Smelting Corp Bhd (MSC) returned to the black in the second quarter ended June 30 despite seeing a decline in turnover.
The tin metal and tin products manufacturer made a net profit of RM9.02mil in the quarter compared with a loss of RM10.28mil previously.
Revenue reduced by some 22.3% to RM307.88mil.
The company said in its Bursa Malaysia filing that lowered revenue for the quarter was due to a lower sales volume of tin metal on lower production in the second quarter of 2017.
The tax liabilities were booked in the second quarter of 2016.
“Our share of results of associates and JVs recorded a net share of profit of RM0.3mil in the second quarter as compared with a net share of loss of RM30.9mil in the second quarter of 2016,” it said.
It said the quarter saw net profit contribution from its mining operations at the Rahman Hydraulic Tin mine, the largest open pit tin mine in Malaysia, grow by 166% year-on-year to RM9.4mil, driven by favourable tin prices.
The company’s tin smelting segment, however, recorded a pre-tax loss of RM3.7mil in the second quarter compared with a pre-tax profit of RM23.3mil in the previous corresponding quarter.
“This was mainly due to the absence of a favourable inventory valuation adjustment, a lower net foreign exchange gain, a lower production volume, lower sales of by-products, a lower volume and premiums from sales, higher production cost and operating expenses,” it said.
Moving forward, MSC expects market conditions to remain challenging due to currency markets and tin prices that continue to remain volatile.
“We are looking forward to completing the technology upgrade of our smelting furnace, which will improve our cost efficiencies over the long term,” CEO Datuk Patrick Yong said in a press release.
thestar.com.my 8 Aug 2017
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