Its revenue moderated by 22% to RM3.07 billion from RM3.92 billion in Q1 FY2022.

Even though the group’s net profit fell, it declared a first interim dividend of 1.75 sen per share, payable on June 30, representing a payout ratio of 51%. This is higher than the dividend of 1.5 sen per share paid out in Q1 FY2022.

In a filing with Bursa Malaysia, the company attributed the lower revenue to the softening of metal selling prices. “The uncertain macroeconomic conditions resulting from high interest rates and monetary tightening have led to a slowdown in global manufacturing activities,” said group CEO Paul Koon.

“As a consequence of the subdued economic environment, the price of aluminium has softened in recent months,” he added.

Moving forward, the group said persistent intermittent disruptions in the global aluminium supply are expected to continue for the current year as a result of elevated energy expenses and adverse weather conditions.

RHB Investment Bank analyst Oong Chun Sung posted a lukewarm outlook for Press Metal.

He said the probability of Western European smelters experiencing a resurgence in the near future is low, primarily due to the volatility of aluminium prices, inconsistent power supply, and the complex process involved in restarting production facilities.

At the close of trade, Press Metal’s share price fell 3.47% or 17 sen to RM4.73, giving it a market capitalisation of RM38.97 billion.