KUALA LUMPUR (Nov 26): Steel products and equipment maker Prestar Resources Bhd’s net profit for the third quarter ended Sept 30, 2020 rose more than two-fold to RM5.23 million from RM2.25 million a year earlier, driven by higher steel prices and positive contributions from its steel pipes, guardrails and racking division.

In a bourse filing yesterday, Prestar said revenue for the quarter increased 7.5% to RM125.92 million from RM117.13 million a year ago due to higher demand for steel pipes and related products.

Earnings per share was 2.70 sen versus 1.15 sen previously.

For the nine months ended Sept 20, Prestar’s net profit jumped to RM6.41 million from RM2.41 million, on the back of revenue RM272.93 million against RM342.39 million a year earlier.

Prestar said the lower revenue for the cumulative period was due to the temporary slowdown in the Company’s sales in April and May due to the Movement Control Order (MCO).

In a separate statement, Prestar group managing director Datuk Toh Yew Peng said as the government eased the MCO restrictions, economic activities picked up and this had a positive impact on the company’s financial performance.

“Demand for Prestar’s products namely steel pipes, hollow sections, guardrails and racking picked up in the 3QFY2020 as the manufacturing and construction sectors reopened,” he said.

Toh added that the government plans to speed up the Pan Borneo Highway, with Phase One of the project in Sarawak estimated to be completed in 2023.

“The Sarawak portion of the highway was only 53% completed, while progress was currently at 34% in Sabah.

“Prestar sees the decision to speed up the constructon of the highway augurs well for the Company as it supplies guardrails and accessories for the Pan Borneo Highway project,” he said.

On its outlook, Toh said the board is cautiously optimistic that the Company’s performance for FY2020 will remain positive and satisfactory.