Financial Highlights

KUALA LUMPUR, Aug 28 ― Malaysia Steel Works (KL) Bhd’s (Masteel) net loss widened to RM22.53 million in the second quarter ended June 30, 2020 (2Q20), from RM10.39 million registered in the same quarter last year.

In a filing to Bursa Malaysia, the steel bars and steel billets manufacturer said its revenue fell to RM195.63 million during the reviewed quarter versus RM294.48 million

“The decrease in revenue in the current quarter was mainly attributed to lower sales volume and selling price due to the negative impact of economic disruptions resulting from the country’s implementation of the movement control order (MCO) in order to curb the spread of the Covid-19 pandemic,” it said.

Moving forward, Masteel said demand for the group’s steel products are expected to continue to improve from the lows of 2Q20.

The unit selling prices are expected to gradually increase to offset the surge of raw material prices resulting from the broad global recovery of demand for steel, it said.

“The company is focused on improving its costs of production, and barring any unforeseen circumstances expects to see improvement of its business results towards the later part of the year,” it added.

No dividend was declared by Masteel during 2Q20.