MSC focuses on improving operational efficiency

PETALING JAYA: Malaysia Smelting Corp Bhd (MSC) will continue capitalising on emerging opportunities in the tin industry despite maintaining a cautious view on its prospects.

In a statement, group chief executive officer Datuk Patrick Young said the group remains committed to pursuing strategic plans to improve operational efficiencies.

“For our smelting arm, the phased decommissioning of the smelting facility at Butterworth, Penang, is on track for full closure by 2025.

“As we shift the group’s smelting operations to the Pulau Indah smelter in Port Klang, we expect to enhance efficiency through reduced operational and manpower costs by 30%,” he stated.

Additionally, the Pulau Indah plant will be utilising a 1.26 megawatt-peak (MWp) solar photovoltaic system, which is expected to further reduce the group’s overall carbon footprint and energy costs.

“In the tin mining segment, we continue to focus on enhancing daily output and overall productivity by implementing new cost-effective technology, expanding our mining activities and resources, and pursuing strategic partnerships,” he added.

MSC posted a 25.62% year-on-year (y-o-y) hike in revenue of RM410.79mil in the second quarter ended June 30 (2Q24) due to higher average tin prices of RM153,400 per tonne in the period compared with RM116,500 per tonne in 2Q23.

Its net profit, however, decrease by 41.23% y-o-y to RM16.72mil or earnings per share (EPS) of four sen.

MSC’s tin mining segment contributed the most to the groups’ net profit compared to its tin smelting segment.

The tin smelting segment posted a softer net profit of RM4.7mil in 2Q24 due to MSC’s annual maintenance of its furnace.

For the six-month period (1H24), MSC recorded revenue of RM773.27mil and net profit of RM34.95mil or EPS of 8.3 sen.

The 15.9% y-o-y rise in 1H24 revenue was on higher average tin prices.

MSC’s tin mining segment posted a larger profit before tax (PBT) of RM52.9mil compared to its tin smelting segment with a PBT of RM19.5mil in 1H24.

MSC stated that in 1Q24, its tin smelting segment’s performance was affected as a result of China purchasing feedstock directly from its suppliers, while in 2Q24, the tin smelting segment’s performance was affected by the scheduled maintenance of its furnace that commenced in mid-May.

Consequently, lower refined-tin production, smelting revenue and sales of refined tin derived from the processed tin intermediates led to the lower profit for tin smelting segment.