Mastell Q3 pre-tax profit rises

Malaysia Steel Works (KL) Bhd's (Masteel) pre-tax profit for the third quarter ended September 30, 2013 increased to RM10.28
million from RM7.55 million recorded in the same quarter last year.

Revenue rose to RM351.18 million during the period under review from RM312.93 million previously.

The company said the better results were mainly attributable to continued improvement in operating efficiency at its Klang Valley-based meltshop and rolling mill.

Masteel managing director and chief executive officer Datuk Seri Tai Hean Leng said the company witnessed unabated demand for steel products in line with increased construction activity in the Greater Klang Valley.

"Masteel recently secured an additional RM20 million steel bar supply contract for the Klang Valley Mass Rapid Transit (KVMRT) project, which will be fully delivered by end-November 2013.

"The sizeable KVMRT contract, coupled with other ongoing supply projects, will strengthen our earnings performance in the fourth quarter of 2013, and enable the company to conclude the 2013 financial year on a high note," he said in a statement today.

With many infrastructure projects under the Malaysian Economic
Transformation Programme, Tai opined that Masteel was poised to benefit significantly from the rolling out of such mega projects in the coming years.

The projects include the subsequent phases of the KVMRT, Tun Razak Exchange, and the KL-Singapore high speed rail.

Looking forward, Tai said the large pipeline of mega projects in the Greater Klang Valley would effectively translate into surging demand for steel.

"Given this, we anticipate stronger growth in the demand for steel bars, hence, our RM100 million capital expenditure to expand our rolling mill capacity over the next two years," he said.

Meanwhile, in a separate statement, Masteel and KUB Malaysia Bhd have combined their capabilities and resources to co-operate and collaborate with each other in the joint-venture company, Metropolitan Commuter Network Sdn Bhd.