Integrated Annual Report 2024 SECTION 2 • MESSAGES FROM OUR LEADERS 19 Management Discussion and Analysis by Group CEO As part of our long-term sustainability strategy, Press Metal remains committed to achieving net-zero emissions by 2050. In 2024, we made significant strides in our sustainability journey, with key achievements detailed in our Sustainability Report. Sustainability is deeply embedded in the Press Metal culture, guiding every decision and process across our operations. To further advance our sustainability goals, we are exploring innovative solutions, such as carbon capture and utilisation and adopting circular economy practices to minimise emissions and waste. These initiatives are integral to reducing our environmental impact and ensuring the long-term sustainability of our operations. Progress Towards Net-Zero 2050 These partnerships reflect our commitment to collaborating with like-minded organisations that share our vision of being responsible stewards to our living environment. By aligning with global leaders, we are advancing our sustainability goals and contributing to broader global efforts towards decarbonisation. As we move forward, we will continue seeking and nurturing partnerships with companies that prioritise innovation, sustainability and responsible production while supporting the global transition to a low-carbon economy. The year presented several operational challenges, including rising alumina prices driven by temporary supply disruptions and elevated freight costs exacerbated by port congestion and geopolitical tensions. The surge in alumina price has impacted all aluminium producers, however, our cost structure was cushioned from the full effect of the market price due to our lower-priced alumina inventory. Alumina prices started to ease towards year-end. Looking ahead, the expansion of refinery capacity in Indonesia, India and China is expected to increase global alumina production. This increase in supply is driving down high alumina prices, alleviating pressure on aluminium production costs. In September 2024, our operation faced an unexpected challenge with a fire incident at Phase 3 of our Samalaju smelter. We are grateful that our robust safety protocols and swift evacuation measures have ensured no injuries or fatalities to any workers. The incident primarily affected our sales volume in the final quarter of 2024, caused by lower output from Phase 3 during the restoration period. We were swift in our recovery efforts, with full restoration of the affected pots back in production by February 2025. The financial impact was minimised as the affected assets were adequately covered by insurance. Amid these challenges, we made significant strides in enhancing operational efficiency through resource optimisation initiatives. By streamlining processes and improving resource allocation, we have enhanced performance across our facilities. These efforts not only strengthen our resilience in the face of external pressures but also reinforce our commitment to sustainable and efficient operations. As we move forward, we remain focused on maintaining operational excellence while continuing to adapt to the dynamic market environment. Read more about operational and other risks and opportunities in the Managing Our Risks and Opportunities Effectively. UPDATES ON OPERATIONAL ACTIVITIES Financial Year Ended 31 December (RM’million) 2024 2023 2022 2021 2020 Revenue 14,910 13,805 15,683 10,995 7,476 EBITDA 3,223 2,551 2,768 2,045 1,239 Profit before tax 2,303 1,646 1,952 1,443 655 Profit after tax 2,125 1,518 1,767 1,295 587 Profit attributable to shareholders 1,766 1,215 1,407 1,002 460 Total assets 16,634 15,366 15,316 14,211 11,934 Shareholders’ funds 8,476 6,933 6,637 3,873 3,995 Total equity 10,305 8,396 8,005 4,920 4,890 Borrowings 4,084 4,628 5,093 6,370 5,148 Net Debt/ Equity Times 0.25 0.40 0.56 1.20 0.91 Net earnings per share* Sen 21.43 14.75 17.16 12.41 5.69 Dividend per share* Sen 7.0 7.0 6.0 3.4 2.1 Note: Adjusted retrospectively to reflect the 1 for 1 bonus issue exercise completed in April 2021. REVIEW ON FINANCIAL PERFORMANCE
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