Integrated Annual Report 2024 SECTION 2 • MESSAGES FROM OUR LEADERS 13 Chairman’s Statement DEAR VALUED STAKEHOLDERS On behalf of Press Metal Aluminium Holdings Berhad, I present to you our Integrated Annual Report for 2024. The IAR 2024 provides a concise review of our performance, strategic direction, and commitment to responsible growth. It highlights our financial and operational achievements, sustainability practices, and governance principles, demonstrating how we create value over the short-, medium-, long-term while keeping PMAH at the forefront of a dynamic market. PERFORMANCE HIGHLIGHTS We achieved strong performances across our refinery, smelting, and extrusion segments in 2024. Despite challenges, and a fire incident at Phase 3 of our Samalaju smelter, we successfully navigated a volatile macroeconomic environment and shifting metal markets to achieve a record profitability. By strategically strengthening our foothold in key priority markets, we successfully adapted to evolving trade flows and mitigated risks associated with alumina supply and price volatility. Higher contributions from value-added products and improved performance from our alumina manufacturing associate, PT BAI, further bolstered our overall results. MARKET DYNAMICS & STRATEGIC POSITIONING In 2024, the global aluminium market saw price fluctuations amid uneven economic performances across regions. While European demand was subdued, Asia’s resilience – driven by manufacturing relocations and lean inventories – spurred stronger regional demand. Steady growth in electric vehicles (“EVs”) and expansion of renewable energy infrastructure helped maintain prices at around USD2,500 per tonne by year-end. We remain cautiously optimistic of the opportunities arising from these developments. Our low-carbon aluminium production supports the growing demand for sustainable materials, and we continue to explore growth avenues through operational integration and economies of scale. At the same time, we remain mindful of evolving trade-related policies which continue to shape market dynamics and require careful navigation. Recognising the critical need for stable alumina supply, we expanded our alumina asset investments in Indonesia in 2024 through PT KAN. Our equity investment of RM1 billion over the next few years will strategically secure this essential input, ensuring operational stability and future growth. For FYE2024, we declared total dividends of 7.0 sen per share, representing a 33% payout ratio of PATAMI. This is a disciplined balance between funding our ambitions and providing shareholder returns. We manage a prudent financial framework, enabling us to invest in high-potential opportunities while sustaining shareholder returns. Our efficient cost structure and strong credit metrics support our growth ambitions. In recognition of our financial strength, RAM Ratings upgraded our RM5.0 billion IMTN Programme rating from AA2 to AA1 in FYE2024. FYE2024 FINANCIAL PERFORMANCE We delivered record financial results despite external volatilities, achieving: Revenue RM14.9 billion PATAMI RM1.8 billion increased by 45% year-on-year (“y-o-y”) Net Gearing 0.25 times (FYE2024) reduced from 0.40 times (FYE2023) Return on Capital 23.7% reflecting disciplined capital allocation
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