According Malaysian Perwaja Holdings'consolidated financial results for July to September quarter 2012,the group reported a higher revenue of MRY 372.0 million,an increase of 4.4%from the same quarter the previous year,mainly driven by improvement in DRI sales volume.On the other hand,the group recorded a pre-tax loss of MYR 38.3 million due to an impairment loss on receivables.
This resulted in revenue for January to September at MYR 1,400.4 million,up 20.2%from the same 9 months the previous year,and pre-tax loss at MYR 19.8 million.
As for prospects for FY2012,the group remains cautiously optimistic on the iron and steel industry for the remainder of 2012 due to the roll out of the ETP(Economic Transformation Programme)projects.ETP projects encompasses the construction of petrochemical facility and maritime industry center,redevelopment of the city and construction of general hospitals,with RM261 million.So far,phase II(November)has been announced.
Meanwhile,the group's major business,Perwaja Steel has a DRI plant(HYL process,1.2 million tonne per annum)and an electric furnace plant,producing 1.3 million tonnes of semi-products such as billet,blooms and beam blanks.
While pellets for DRI is dependent on imports,mined iron ore will be supplied to concentration and pelletizing plant in Kemaman.The group has embarked on the construction of the plant which when completed,will reduce the group's reliance on imported pellets.After the completion of the planned phase II,pellets production capacity will double to 2.4 million tonne per annum.The produced pellets will be purchased by companies nearby as well as supplied to Perwaja's own plant,aiming to decrease production cost and to strengthen competitiveness.
In preparation for this,the Terengganu government has approved the right for the company to mine iron ore at a 243ha Bukit Besi area.Contract conditions are being finalized.The mining right is valid for up to 42 years with renewal of a mining lease every ten years.
Perwaja Steel was sold to Maju Holdings Sdn Bhd and privatized in 2003 and listed on Mainboard of Bursa Malaysia in 2008.
