Prestar Resources 1Q profit grows six-fold

Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Tuesday, 21 May 2013 18:22
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KUALA LUMPUR (May 21): PRESTAR RESOURCES BHD []’s net profit
for the first quarter was six times higher from a year earlier as
improvement in business conditions increased demand and prices for
steel products.
In a filing with Bursa Malaysia, the steelmaker reported it made RM3.14
million in net profit for the first quarter ended March 31, 2013 (1QFY13)
as compared to RM511,000 in the previous corresponding quarter.
Prestar’s revenue increased by 16% to RM154.02 million in from
RM132.77 million it made in 1QFY12.
“Uptrend in the steel prices and market demand experienced since the
end of last year coupled with improvement in business conditions amidst
robust domestic economy growth were the keys to the overall
improvements,” the company explained.
Prestar said market sentiments and conditions had improved with
positive developments in the world’s economy and the Malaysian
government’s ongoing Economic Transformation Programme initiatives.
“However the upbeat momentum took a slight dip upon entering the
second quarter and with some uncertainties looming,
“On this backdrop, barring any unforeseen circumstances, the board (of
Prestar) expects the group to continue generating satisfactory financial
results for the rest of the financial year,” Prestar said on its prospects.