Prestar Resources doubles net profit for 4QFY21, proposes two sen dividend

Prestar Resources Bhd reported a 111.84% increase in its net profit for its fourth quarter ended Dec 31, 2021 (4QFY21) at RM33.54 million from RM15.83 million a year ago supported by higher selling prices and profit margin as well as strong demand its products.

Earnings per share (EPS) for the quarter stood at 10.03 sen versus 4.91 sen last year, its filing on Wednesday (Feb 23) showed.

Quarterly revenue for the steel product and equipment maker was 41.2% higher at RM193.45 million compared with RM137.05 million a year prior due to the resumption of economic activities and the easing of pandemic-driven containment measures.

For its financial period ended Dec 31, 2021 (FY21), Prestar’s net profit rose 329.06% to RM95.19 million from RM22.24 million while its revenue was 31.4% higher at RM538.68 million from RM409.98 million in FY20.

Prestar’s cumulative EPS for FY21 stood at 28.48 sen, a 21.59 sen improvement from 6.89 sen in FY20.

Its board of directors has also proposed a single-tier final dividend of two sen per share for FY21 — one sen higher than 4QFY20’s one sen per share — amounting to RM6.86 million subject to the approval of its shareholders at its forthcoming annual general meeting.

The final dividend will bring Prestar’s total dividend to five sen per share in FY21, four sen higher than in FY20.

On its prospects, Prestar pointed to the fluctuating prices of steel raw materials amid volatile iron ore prices while competition remains stiff with profit margin squeeze expected as a challenge for FY22.