KUALA LUMPUR: Malaysia Smelting Corporation Bhd's (MSC) returned to the black in the third quarter ended September 30, 2023 (3Q23) with a net profit of RM11.82 million compared with a net loss of RM31.32 million a year ago.
Quarterly revenue increased to RM364.02 million from RM344.12 million previously, underpinned by higher average tin price of RM123,800 (3Q23) as compared with RM104,700 (3Q22) per metric tonne and higher sales quantity of refined tin in 3Q23.
MSC said the tin smelting segment recorded a loss before tax of RM3.4 million in 3Q23 as compared with a loss before tax of RM61.1 million in 3Q22 due to higher average tin price and higher sales quantity of refined tin.
"The TSL furnace at Pulau Indah was under annual shutdown and maintenance since June 2023, and only resumed smelting activities in August 2023.
"Whereas in 3Q22, there were sharp decline in tin prices and longer than expected furnace outage at Pulau Indah plant due to logistic delay to secure specialised fire rated furnace bricks," the company said in a filing to Bursa Malaysia today.
Earnings per share for 3Q23 came in at 2.8 sen compared with a loss per share of 7.5 sen for 3Q22.
For the cumulative nine months period, MSC's net profit increased to RM75.68 million from RM72.46 million a year ago, while revenue declined to RM1.03 billion from RM1.11 billion previously.
On prospects, MSC said the current high inflationary and tight monetary environment, continued geopolitical tensions, and supply chain disruptions could weigh heavily on the global economy, with the fear of a global recession looming.
The company said it remains cautious and continues to focus on operational efficiencies and improvements on all areas of operations, technology, manpower and logistics in its smelting and mining business segments.
"With the operation in the Pulau Indah (PI) plant, using newer and more efficient technology on target for full commission and the planned closure of the old plant at Butterworth, the company expects higher efficiency from lower operational and manpower costs, and its energy saving initiatives, while reducing its overall carbon footprint.
"The plan to de-commission the smelting facility at Butterworth in stages, commencing 2024 is on track and the company anticipates cost savings of up to 30 per cent," it added.
For the tin mining segment, MSC continues to focus on improving and increasing daily mining output and overall mining productivity.
This includes taking steps to expand its mining activities and tin mines resources.