It said on Tuesday despite the moderate growth in demand, “the market is expected to remain competitive with the imminent entry of new capacity to the industry”.
Southern Steel said its earnings surged 91.5% from RM37.04mil a year ago. It revenue rose 30.7% to RM956.44mil from RM731.56mil. Earnings per share were 16.17 sen from 8.67 sen.
In the first half, its earnings jumped 121% to RM123.37mil from RM55.86mil in the previous corresponding period. Its revenue rose at a slower pace of 41% to RM1.85bil from RM1.32bil.
As at end Dec 31, 2017, Southern Steel had cash and cash equivalents of RM104.33mil compared with RM86.54mil as at June 30, 2017.
During the period, inventories declined to RM584.83mil from RM688.56mil while trade and other receiveable rose to RM271.49mil from RM184.87mil. Its reserves rose to RM280.40mil from RM154.70mil.
Borrowings declined to RM678.37mil from RM775.65mil.