The globally integrated aluminium producer, Press Metal, with its largest presence in South East Asia recorded augmented sales and earnings for the first quarter till 31st March 2022.
The firm’s revenue ascended to 86.6% Y-o-Y in 1Q 2022 to reach RM 3.92 billion, and the net profit heightened by 104.7% Y-o-Y to RM 421.02 million on the ground of higher production and soaring sales price.
The European market facing the challenge of an extensive rise in energy prices has hindered production in the region, however, Press Metal believes that the market situation will probably get better in the coming years.
Tan Sri Paul Koon, the CEO of Press Metal Aluminium, confirmed that the company would take full advantage of the prevailing market scenario to boost sales.
He also said: “Market fluidity on the backdrop of demand and supply dynamics is an expected phenomenon in our business.”
“We have experienced numerous cycles over the years, and ultimately, emphasizing our competency and efficiency is how we continue to remain competitive.”
China is somehow trying to compensate for the demand gap in the European aluminium market due to its domestic Covid regulation. Since its national markets countering a steady downfall, China wishes to fill the aluminium crisis in the European countries.
The CEO sounded confident enough when he claimed that Press Metal is the largest aluminium smelter in the region and can cater to the customers’ preferences by lowering uncertainties due to logistic disruption and other additional trade tensions.
Press Metal hopes that being an export hub: the South-East Asian region should witness increasing demand for raw materials such as aluminium due to the rejuvenation of the economy and surmounting manufacturing activities in the area.
“This could swiftly reverse when the Chinese economy switches back on gear with the eventual easing of lockdowns coupled with its US$2.3 trillion (RM10.04 trillion) infrastructure plan to spur the economy,” Koon remarked.
source https://www.alcircle.com/news/press-metal-s-q1-earnings-show-a-significant-rise-due-to-high-aluminium-prices-and-production-80566
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