M’sia Smelting Corp 2Q net profit surges to RM36.3m

KUALA LUMPUR: MALAYSIA SMELTING CORPORATION [] Bhd (MSC) net profit for the second quarter ended June 30, 2011 surged to RM36.3 million from RM7.98 million a year earlier due mainly to better results from its Butterworth smelting operations and investments in KM Resources Inc.

The company said on Wednesday, Aug 10 that its revenue for the quarter jumped to RM852.63 million from RM623.13 million in 2010. Earnings per share was 36.3 sen, while net assets per share was RM4.30.

MSC declared a gross interim dividend of 12 sen per share to be paid on Sept 28.

For the six months ended June 30, MSC posted net profit RM64.58 million compared to net loss RM21.15 million, on the back of revenue RM1.59 billion.

Reviewing its performance, MSC said the increase in its revenue was due mainly to higher average tin prices.

The company said the higher profits were contributed by its tin mining and smelting operations in Malaysia and Indonesia, while its investment in its 30% jointly held entity in the Philippines, KM Resources Inc also returned a better result.

On its current year prospects, MSC said that despite the heightened global uncertainty in the financial and commodities markets following the sovereign-debt crisis of developed countries, the company expects to remain profitable in the second half of 2011.