September 07, 2008

MSC Q1 net profit jumps by 135% YoY

Malaysia Smelting Corporation Bhd said that its net profit for the first quarter ended March 31st 2008 jumped by 135.18% YoY to MYR 15.31 million on the back of higher tin prices and contributions from its Indonesian subsidiary PT Koba Tin. Its revenue rose by 60% YoY to MYR 572.6 million as compared with MYR 357.87 million a year earlier.

Announcing its quarterly results yesterday, MSC attributed that its favorable results to higher tin prices, which was caused by tightening of supply.

Currently, Indonesia and China are the top producers of tin, but the Chinese government in January imposed a 10% tax on tin exports to protect tin supply from flowing out of the country, pushing tin prices to record highs.

MSC in a statement said that “London Metal Exchange 3 month tin price at March 31st 2008 was USD 20,575 per ton vis à vis USD 13,700 per ton on March 31st 2007.”