Revenue dipped 5% to RM1.44 billion from RM1.5 billion in 2022, the group said in a filing with Bursa Malaysia today.
This was mainly due to the lower average tin price of RM118,100 per metric tonne compared with RM136,700 in 2022 – a 13.6% drop – despite higher sales of refined tin in 2023.
MSC declared a final single-tier dividend of seven sen per share for the quarter, bringing the full-year payout to 14 sen per share.
Its tin smelting segment recorded a profit before tax of RM45.6 million in 2023 compared with a loss before tax of RM6.7 million in 2022, it said.
The better performance was mainly due to higher profits from increased sales of refined tin derived from the processed tin intermediates during the first half of FY2023, higher sales of by-products and higher smelting revenue.
The tin mining segment posted a profit before tax of RM87.2 million in 2023 as compared with RM134.4 million in 2022. The drop was mainly due to lower average tin price in 2023.
Net profit for Q4 FY2023 tumbled 64% to RM9.37 million from RM25.84 million in Q4 FY2022. Quarterly revenue edged up 3% to RM404.63 million from RM391.15 million a year ago.
The tin smelting segment recorded a loss before tax of RM5.7 million in Q4 FY2023 from a profit before tax of RM25.6 million a year earlier. The poor performance was attributed to foreign exchange loss, the absence of sale of refined tin from processed tin intermediates and sale of by-products.
Moving forward, MSC said heightened geopolitical risks from the conflict in the Middle East and the long-drawn Russia-Ukraine war continue to weigh down heavily on the global economy.
“The group remains cautious, and continues to focus on operational efficiencies and improvements in its smelting and mining business segments.”
It hopes to reap benefits from the commissioning of its new plant in Pulau Indah, Selangor, which utilises newer and more efficient technology, and the planned closure of its old plant in Butterworth.
“The plan to decommission the smelting facility in Butterworth in stages, commencing 2024, is on track and the group anticipates cost savings of up to 30%,” MSC said in an accompanying statement.
For the tin mining segment, it will continue to focus on improving and increasing daily mining output and overall mining productivity. This will include expanding its mining activities and tin mines resources.
MSC’s shares ended two sen or 0.96% lower at RM2.07, giving it a market capitalisation of RM869.4 million.