By Chester Tay

Press Metal Aluminium Holdings Bhd.'s net profit fell 11% in the first quarter, primarily due to lower aluminum prices.

Net profit dropped to 102.6 million ringgit ($24.0 million) while revenue fell 16% to MYR1.83 billion from a year earlier, the aluminum producer said in a stock exchange filing late Thursday.

Press Metal said it had a challenging start to the year due to the Covid-19 pandemic, which reduced demand and prices for aluminum as economic activity declined.

Nonetheless, the group said it has locked in some favorable pricing from forward hedging that mitigated some of the impact from the low-price environment.

Despite the temporary setback, Press Metal said it is confident of its low-cost model and remains committed to expanding as planned, aiming to commission the group's Phase 3 smelter in January 2021, increasing capacity by 42% from 760,000 up to 1,080,000 tons a year.

Press Metal said its investment in an alumina refinery in Indonesia is also progressing as planned and it expects to carry out Phase 1 commissioning by the end of the year.

Write to Chester Tay at chester.tay@wsj.com