Perwaja outlook brightened by ETP, says chairman

Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Monday, 20 May 2013 16:02
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KUALA LUMPUR (May 20): Perwaja Holdings Bhd chairman Tan Sri Abu
Sahid Mohamed said the key driver of steel consumption will largely be
the continual investments from both government and private sectors in
Economic Transformation Programme (ETP) projects.
In his chairman’s statement in Perwaja’s latest annual report, Abu Sahid
said the economic growth corridors also offer a range of opportunities
across property and infrastructure sectors.
“In light of the opportunities and positive outlook, the group is well
placed to continue benefitting from the robust CONSTRUCTION []
growth in Malaysia.
“Perwaja’s growth will be further enhanced with the completion of the
concentration and pelletising plant, which will provide the group with a
good hedge against the volatile fluctuation of raw material prices and
improve cost structure, leading to an improvement in earnings,” said Abu
Sahid.
He added that Perwaja expects the concentration plant to be fully
commissioned in the third quarter of this year, while the pelletising plant
is estimated to follow suit six months later.
In the financial year ended last December (FY12), Perwaja narrowed its
net loss to RM232 million from RM262 million. Its revenue also
increased to RM1.86 billion from RM1.59 billion.
“The increase in revenue and lower losses was attributable to improved production levels, better margin, and improved sales
of direct reduced iron (DRI) in 2012. DRI sales increased more than 260% to 370,000 metric tonnes from 102,000 metric
tonnes in the previous corresponding year,” Abu Sahid said.
“These positive outcomes amid the difficult operating environment were due to the stimulus measures initiated by the
government under the ETP and the National Key Economic Areas.”
At 3:28 pm, Perwaja shares were up by four sen or 8.7% to 50 sen per unit with 5.82 million shares traded.