KUALA LUMPUR (Jan 21): Pantech Group Holdings Bhd, which supplies pipes and valves the oil and gas (O&G) industry, said today third quarter net profit fell 14.8% to RM8.75 million from RM10.27 million a year earlier as revenue dropped partly due to a decrease in sales of the company’s products to O&G customers at a time when the industry contended with the impact of the Covid-19 pandemic.

In a Bursa Malaysia filing today, Pantech said the group remains cautious on the economic impact of the Covid-19 outbreak around the world and the challenges faced by the O&G industry at a time of low crude oil prices.

"While various economic sectors [have] gradually resumed [operations] both domestically and internationally, the group believes a slower economic recovery is expected. Despite the short-term challenges, the group believes the long-term business outlook continues to be cautiously positive,” the company said.

Pantech said revenue slipped to RM133.04 million in the third quarter ended Nov 30, 2020 (3QFY21) from RM165.51 million a year earlier.

For 9MFY21, Pantech said cumulative net profit fell to RM13.92 million from RM28.62 million a year earlier while revenue dropped to RM350.01 million from RM458.57 million.

Despite the weaker 3QFY21 and 9MFY21 financial results, the group declared for the quarter in review a dividend of 0.5 sen a share, which will be paid on April 16, 2021. 

The dividend's ex date will be on March 30, 2021, Pantech said.

Looking ahead, Pantech said the group will continue to focus on its existing revenue-generating businesses and grow its businesses locally and overseas by enhancing its competitiveness as a major provider of pipes, valves and fittings to the O&G industry.

"The group will seek to secure orders from its customers aggressively from both domestic and export markets. Barring further unforeseen circumstances, the group expects its overall performance for the current financial year to remain profitable,” Pantech said.

At 5pm today, Pantech’s share price closed two sen or 4.49% higher at 46.5 sen for a market value of about RM347.31 million. The stock saw some 12 million shares traded.