Business

Malaysia Smelting back in the black

Better sales and tin price helped the company back into the black.

Syndicated News
Written by Syndicated News

By Othman Abu Bakar

KUALA LUMPUR — May 10, 2016: Malaysia Smelting Corporation (MSC) has returned to the black for the first quarter to last March 31, with a pre-tax profit of RM32.83 million against a loss of RM1.93 million a year ago.

The company told Bursa Malaysia today that revenue rose to RM408.4 million from RM381.64 million previously. After-tax profit was at RM24.94 million from a loss of RM2.89 million previously.

Higher sales quantity and improved tin prices helped to lift earnings in the first quarter.

Besides improving market condition in the first quarter and higher sales quantity of refined tin, a favourable valuation adjustment on tin inventory arising from higher closing tin price at end of 1Q 2016 and a positive impact of foreign currency translations were the other major reasons for earnings improvement. All the group’s core business units continue to remain profitable.

But although base metal prices, including tin, have recovered from the lows of last year, the outlook for the global commodity and resource sector is still unstable amid continuing concerns on global macroeconomic issues and Chinese consumption appetite for base metals.

“Despite these challenges and concerns, the underlying core operations of the group comprising Butterworth International Smelter and the Rahman Hydraulic Tin mine are expected to perform satisfactorily for the current financial year.”

However, MSC remains cautious that the group’s financial results will continue to be affected by volatility in tin price and currency.

In another report, Datasonic Group said that after receiving a letter of award (LoA) from the Home Ministry worth RM223 million last month, it today received another LoA worth RM260.4 million.

Tle latest LoA is for the supply of 12,000,000 units each of MyKad raw cards and MyKad consumables for three years and six months for July 1 to December 31, 2019.

Last month’s LoA to subsidiary Datasonic Technologies Sdn. Bhd. was for the supply of  13,416,000 Malaysian passport documents from December 1 this year to November 30, 2021.

Datasonic informed Bursa Malaysia that under the terms of the LOA, DTSB is required to furnish a performance bond of RM3.7 million to the ministry, with a validity period from this July 1 to December 31, 2020.

The contract is expected to contribute positively to the future earnings and net assets per share of Datasonic Group for the financial year ending March 31, 2017, and the financial years thereafter for the duration of the contract and will not have any effect on the share capital and substantial shareholders’ holdings in the group.

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