Friday 29 Mar 2024
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KUALA LUMPUR (June 11): Pantech Group Holdings Bhd saw its fourth quarter net profit decline 35.88% to RM7.23 million from RM11.28 million a year earlier, dragged by slow oil and gas activities, sale of smaller-margin products and higher taxes.

Earnings per share for the quarter ended Feb 29, 2020 (4QFY20) fell to 0.97 sen from 1.52 sen in 4QFY19.

The group has declared a share dividend on the basis of one treasury share for every lot held, or equivalent of 0.39 sen per share — down from 1 sen per share the year before.

In a filing with Bursa Malaysia, Pantech said its trading business during the quarter was dragged by lower demand and delivery in local oil and gas projects while its manufacturing division saw lower contribution on higher sales of lower margin carbon steel products.

The higher sales in the manufacturing division more than offset lower trading business revenue, thus slightly raising the group's top line by 0.91% to RM143.91 million from RM142.61 million previously.

For the whole of FY20, Pantech’s net profit was down 24.45% to RM35.86 million from RM47.46 million in FY19, mainly due to weaker trading business on lower activities in local oil and gas projects.

Full-year revenue fell 1.11% to RM602.47 million from RM609.22 million, as the oil and gas business slowdown more than offset higher sales from the manufacturing segment.

Shares of Pantech slid half a sen or 1.28% to 38.5 sen, valuing the group at RM289.14 million.

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