KUALA LUMPUR (Aug 8): Malaysia Smelting Corp Bhd (MSC) registered a net profit of RM28.45 million in the second quarter ended June 30, 2023 (2QFY2023), a 27.89% decline from RM39.45 million a year prior, due to lower profit from its tin mining segment.

The tin miner and metal producer recorded a lower average tin price of RM116,500 per metric tonne (mt) in 2QFY2023, versus RM158,900 per mt in the same period last year, despite higher sales quantity of refined tin, its filing showed.

This dragged MSC’s revenue down to RM327.01 million, or 20.01% from RM408.84 million a year ago.

Consequently, MSC posted earnings per share of 6.80 sen for the quarter, from 9.40 sen per share a year ago. No dividend was declared for the current quarter under review.

On a quarter-on-quarter basis, MSC’s net profit was down 19.66% against RM35.41 million in the immediate preceding quarter due to lower profit from both tin mining and tin smelting segments, as revenue fell 3.84% from RM340.06 million on lower sales of refined tin, despite a higher average tin price of RM116,500 per mt in 2QFY2023 from RM116,100 per mt in 1QFY2023.

For the full six-month period, net profit declined 38.47% to RM63.86 million from RM103.79 million a year earlier, on lower profit from both tin mining and tin smelting segments.

Six-month revenue fell 13.18% to RM667.07 million from RM768.31 million on lower average tin prices.

Moving forward, MSC said that it remains cautious and continues to focus on operational efficiencies and improvements on all areas of operations, technology, manpower and logistics in its smelting and mining business segments.

“With the operation in the Pulau Indah plant using newer and more efficient technology on target for full commission and the planned closure of the old plant at Butterworth, the group expects higher efficiency, lower operational and manpower costs, while reducing its overall carbon footprint.

"For the tin mining segment, the group continues to focus on improving and increasing daily mining output and overall mining productivity. This includes taking steps to expand its mining activities and tin mines resources," it said.

Shares in MSC closed down six sen or 2.59% to RM2.26 on Tuesday (Aug 8), giving the group a market capitalisation of RM949.2 million. In the past year, the stock has appreciated 47.71% from RM1.53.