KUALA LUMPUR (Nov 21): Malaysia Steel Works (KL) Bhd’s (Masteel) net profit jumped 71.63% to RM10.08 million or 2.37 sen per share for the third quarter ended Sept 30, 2019 from RM5.87 million or 1.38 sen per share a year earlier, thanks to higher tax credit.

This is Masteel’s first profitable quarter after three consecutive loss-making quarters.

In a filing with Bursa Malaysia today, the group said its tax credit quadrupled to RM7.98 million during the quarter from RM1.92 million previously.

This was despite a 30.35% decline in quarterly revenue at RM270.55 million from RM388.43 million previously, due to lower sales volume and selling price.

For the nine-month period, Masteel posted a net loss of RM8.99 million or 2.11 sen a share, versus a net profit of RM31.57 million or 7.44 sen a share a year ago, while revenue slipped 26.35% to RM845.45 million from RM1.15 billion.

On prospects, the group expects a gradual recovery towards the end of the year and this turnaround is expected to gather strength in 2020.

“The local demand for steel bars has rebounded from a trough in September 2019,” Masteel said.

Masteel added it is continuing to fine tune its new plant and machinery to ensure that the delivery of healthier performance is in line with the recovery of steel demand in the coming year.

Shares of Masteel closed half a sen or 1.43% lower at 34.5 sen today, valuing the company at RM147.79 million.