Chairman: ETP brightens Perwaja outlook

Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Tuesday, 21 May 2013 10:22
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KUALA LUMPUR: Perwaja Holdings Bhd chairman Tan Sri Abu Sahid
Mohamed said the key driver of steel consumption in the country will
largely be continuous investment from the government and private
sector in the Economic Transformation Programme (ETP) projects.
The economic growth corridors offer a range of opportunities in the
property and infrastructure sectors, he wrote in Perwaja’s latest annual
report.
“In light of the opportunities and positive outlook, the group is well
placed to continue benefiting 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 fluctuations in 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 expected to follow suit six months later.
In the financial year ended Dec 31, 2012 (FY12), Perwaja narrowed its
net loss to RM232 million from RM262 million. Revenue increased to
RM1.86 billion from RM1.59 billion previously.
“The increase in revenue and lower losses were 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 tonnes from 102,000 tonnes a year
ago.
“These positive outcomes amid the difficult operating environment were due to stimulus measures initiated by the government
under the ETP and National Key Economic Areas,” Abu Sahid said.