PETALING JAYA: Tin miner and metal producer Malaysia Smelting Corporation Bhd MSC) reported that revenue grew by 25.6% year-on-year to RM410.8 million for its second quarter ended June 30, 2024 (Q2’24) from RM327 million in the preceding year’s corresponding quarter, primarily on the back of higher average tin prices.
Meanwhile, net profit attributable to shareholders amounted to RM16.7 million (Q2’23: RM28.4 million).
The tin smelting segment posted profit after tax (PAT) of RM4.7 million in Q2’24 (Q2’24: RM16.3 million).
The group said the softer performance can be attributed to MSC’s annual rebricking and scheduled maintenance of the Top Submerged Lance (TSL) furnace, which took place from mid-May to mid-July this year. This impacted the group’s overall refined tin production and smelting revenue in Q2’24. In the previous year, the annual rebricking and maintenance occurred in mid-June to mid-August, causing the impact to be felt in different financial quarters.
Meanwhile, the tin mining business saw a 45.2% increase in PAT to RM24.9 million in Q2’24, from RM17.2 million in Q2’23, driven by favourable tin prices of RM153,400 per metric ton (MT) in Q2’24 compared to RM116,500/MT in Q2’23.
MSC also announced that revenue for the first half ended June 30, 2024 (H1’24) climbed 15.9% to RM773.3 million compared to RM667.1 million the preceding year’s corresponding period, fuelled by higher average tin prices of RM139,100/MT (H1’23: RM116,300/MT). Net profit amounted to RM35 million in H1’24, against RM63.9 million in the prior year.
MSC group CEO Datuk Dr Patrick Yong, said, “In the first half of 2024, we benefitted from favourable tin prices, which contributed to the group’s topline growth. However, our profitability was impacted by the planned two-month annual maintenance of the TSL furnace, which resulted in lower refined tin output, smelting income and profit during this period.”
Moving forward, MSC remains committed to pursuing its strategic plans to improve operational efficiencies.
“For our tin smelting arm, the phased decommissioning of the smelting facility at Butterworth, Penang, is on track for full closure by 2025. As we shift the group’s smelting operations to the Pulau Indah smelter in Port Klang, we expect to enhance efficiency through reduced operational and manpower costs. Additionally, the Pulau Indah plant utilises a 1.26-megawatt-peak solar photovoltaic system, which will further reduce our overall carbon footprint and energy costs,” Yong said.
