KUALA LUMPUR (Feb 24): Press Metal Aluminium Holdings Bhd's net profit fell 9.5% to RM131.53 million for the fourth quarter ended Dec 31, 2019 (4QFY19) from RM145.36 million a year ago, on lower revenue as a result of the softening of metal prices during the current quarter under review.

This resulted in a lower earnings per share of 3.26 sen for 4QFY19 compared with 3.68 sen for 4QFY18.

Revenue for the quarter declined 4.4% to RM2.13 billion from RM2.23 billion a year ago.

Nevertheless, Press Metal declared a fourth interim dividend of 1.25 sen per share, amounting to RM50.48 million, for the financial year ended Dec 31, 2019 (FY19), payable on March 12.

The weak quarterly performance dragged the group's net profit for the full-year 2019 down by 23.9% to RM471.03 million from RM618.93 million in the previous year, while revenue fell 6.7% to RM8.56 billion from RM9.17 billion in FY18.

On FY20 prospects, Press Metal said the coronavirus outbreak, which has been ongoing since January, is causing a temporary disruption to global economic activities and dampening aluminium prices.

"There should be a recovery in prices if the situation improves," it added.

Notwithstanding this, Press Metal plans to further expand its presence in Southeast Asia as it believes this region is poised to enjoy growth with strong inflows of foreign investment.

"Strengthening our foothold here is advantageous due to our close proximity and experience in this region. With additional capacity coming on stream and contributions from strategic investments, we expect improvements in our performance for this coming year," it said.

Press Metal's Phase 3 smelter is currently on schedule to meet targeted commissioning in the fourth quarter of this year and will increase its total capacity by up to 42%, from 760,000 up to 1,080,000 tonnes per year.

"The progress of our investment in an alumina refinery in Bintan is moving as planned and we expect Phase 1 commissioning by end-2020."

Press Metal shares closed down two sen or 0.41% at RM4.88 today, with 2.26 million shares done, bringing it a market capitalisation of RM19.71 billion.