KUALA LUMPUR (Feb 26): Asia’s largest aluminium smelter Press Metal Aluminium Holdings Bhd is expecting rosy prospects ahead, despite current headwinds.

Its group chief executive officer Tan Sri Paul Koon said the company remains confident on the prospects as the market is expecting aluminium demand to outstrip supply, while prices are also expected to improve.

“While the partial shutdown of the alumina refinery in Brazil since March 2018 had resulted in higher raw materials cost for the past quarters and in the near term, we believe alumina price will ease when the new alumina refinery in the Middle East with substantial capacity comes on-stream in 2019 and the potential resumption of full production capacity in the alumina refinery in Brazil,” Koon, who is also the controlling shareholder, commented in the release of the group’s quarterly earnings figures.

“We are looking to double our value-added contribution to 60% in FY19 from 30% in FY17.

“Currently, our value-added products contribute approximately 50% of total sales. This strategy has served us well thus far, hence we will continue to entrench our position with end users,” he added.

The aluminium smelter’s net profit for the fourth quarter ended Dec 31, 2018 (4QFY18) grew 4% to RM156.41 million year-on-year against RM150.19 million mainly.

Earnings per share came in almost flat at 3.96 sen from 3.98 sen in 4QFY17. Quarterly revenue rose by 6% to RM2.25 billion versus RM2.13 billion a year ago.

The company declared a 1.5 sen per share dividend for the financial year ended Dec 31, 2018. It will be paid on April 2.

For the full year, annual net profit rose 6.2% to RM629.98 million compared with RM593.38 million in the previous year, while annual revenue expanded 12% to RM9.16 billion from RM8.18 billion previously.

In a statement today, the aluminium smelter company said the performance for the financial year is satisfactory considering headwinds, such as the partial shutdown of the world’s largest alumina refinery in Brazil and the tariff imposed on China’s export to America.

Press Metal closed down 13 sen or 3.04% to RM4.15, for a market value of RM16.44 billion. Some 1.32 million shares were traded.