Straits Trading : Malaysia Smelting back in the black in 2Q, registers RM9 mil net profit The Edge Malaysia (Online)

Anette Appaduray /theedgemarkets.com August 07, 2017 20:11 pm MYT

KUALA LUMPUR (August 7): Malaysia Smelting Corp Bhd's second financial quarter ended June 30, 2017 (2QFY17) saw it return into the black, registering a net profit of RM9 million, compared with losses of RM10.3 million seen in the same period last year on the back of better associates and joint ventures' contribution.

In a filing with Bursa Malaysia today, the Group's share of results of associates and joint ventures recorded a net share of profit of RM300,000 in 2Q 2017 compared with a net share of loss of RM30.9 million in 2Q 2016.

Share of loss in 2Q 2016 was mainly due to the provision of additional prior years' tax liabilities from the Group's investment in a joint venture, KM Resources, Inc.

Its quarterly revenue fell by 22.3% down to RM307.9 million from RM396.3 million a year ago due mainly to lower sales volume of tin metal.

Cumulative six-month (6MFY17) net profit rose by 47.7% up to RM21.6 million from RM14.7 million last year, while revenue fell 11.2% lower to RM714.5 million from RM804.7 million.

"Market conditions are expected to remain challenging as the currency markets and tin prices continue to remain volatile," said the group's chief executive officer Datuk Dr Patrick Yong in a separate statement today.

"We are looking forward to completing the technology upgrade of our smelting furnace which will improve our cost efficiencies over the long term," he added.

Malaysia Smelting's shares closed two sen or 0.49% higher at RM4.12, for a market capitalisation of RM412 million.