KUALA LUMPUR: Malaysia Smelting Corp Bhd's (MSC) net profit jumped 13.5 times to RM39.5 million in the second quarter (Q2) ended June 30, 2022, from RM2.9 million a year ago.
The tin miner and metal producer said revenue also rose 25 per cent to RM408.8 million in Q2 2022 from RM327.1 million last year.
This was mainly due to the higher sales quantity of refined tin in Q2 2022, despite a decrease in average tin prices from RM180,000 (Q1 2022) to RM158,900 ( Q2 2022) per metric tonne, the company said in a statement.
For the first half of the financial year ended June 30, 2022 (1H22), MSC's net profit jumped more than 4-fold to a historic high of RM103.8 million from RM25.1 million a year earlier.
Revenue grew by 27.4 per cent to RM768.3 million in 1H22, compared to RM603.0 million in the previous year's corresponding period.
The strong performance was mainly driven by high tin prices and increased production with the absence of operational disruptions due to the full movement control order (FMCO) from June 1, 2021, onwards.
Commenting on the company's performance, group chief executive officer Datuk Patrick Yong said the company is delighted to have recorded strong growth in 1H22, despite the easing of tin prices in Q2 2022.
Like other base metals, tin has been affected by geo-political tensions and China's zero-Covid policy, which contributed to softer demand, said Yong.
"Nonetheless, market sentiment is anticipated to improve as China re-opens its economic sectors with the lifting of the lockdown.
"With that in mind, we foresee tin prices holding up higher than pre-pandemic levels in the near to mid-term," he said.
Overall, Yong said MSC's outlook remains bright, supported by tin's positive prospects and strategic initiatives to enhance efficiencies across the company.
"Based on these factors, we expect to sustain our growth trajectory for the financial year 2022 (FY22)," he added.