KUALA LUMPUR: Malaysia Smelting Corp Bhd (MSC)’s third quarter net profit fell 15.29% to RM17.3 million or 17.3 sen a share, from RM20.42 million or 20.4 sen a share a year earlier, due to a decline in revenue and a lower favourable valuation adjustment on tin inventory.
Revenue for the quarter ended Sept 30, 2016 (3QFY16) dropped 15.87% to RM323.13 million, from RM384.1 million in 3QFY15. In a filing with Bursa Malaysia today, MSC attributed the lower revenue to a fall in production of refined tin, arising from lower receipt of feed materials.
For the first nine months of FY16, MSC’s net profit jumped by more than 12 times to RM31.95 million or 32 sen a share, from RM2.63 million or 2.6 sen a share in the previous corresponding period. Revenue for the Jan-Sept period rose 1.59% to RM1.13 billion, from RM 1.11 billion previously.
“This was mainly due to higher tin prices, better profit margin, a favourable valuation adjustment on tin inventory and a positive impact from foreign exchange differences,” said the group.
MSC said its Butterworth international smelting business recorded higher earnings, mainly due to higher tin prices, better profit margin, a favourable valuation adjustment on tin inventory and a positive impact from foreign exchange differences. Going forward, the group expects to continue being impacted by tin price and foreign exchange fluctuations.
“Although tin prices have somewhat improved, market conditions remain challenging, [since] global commodity and resource sectors are still volatile,” it said. MSC’s share price closed up six sen or 1.61% at RM3.78 today, giving the company a market capitalisation of RM374 million.
