KUALA LUMPUR (Oct 21): Weaker sales have dragged Pantech Group Holdings Bhd's net profit down by some 22.11% to RM10.43 million in its second quarter ended Aug 31, 2015 (2QFY16) from RM13.39 million a year ago.

This translated to an earnings per share (EPS) of 1.72 sen in its latest quarter compared to 2.33 sen in 2QFY15.

Revenue was down 14.12% at RM121.41 million from RM141.37 million a year earlier, according to its announcement to Bursa Malaysia today.

Nevertheless, the pipes and fittings manufacturer which primarily serves the oil and gas (O&G) industry has declared a second interim dividend of 0.6 sen per share for its FY16, payable on Jan 14; the ex-date is on Dec 18.

Pantech said the weaker sales performance was mainly due to weaker demand delivery in local and overseas O&G sector, while more competitive pricing has caused its profit to shrink.

As for its six months ended Aug 31, 2015 (6MFY16), net profit fell 27.54% to RM19.55 million from RM26.98 million in the same period last year, resulting in its EPS shrinking to 3.23 sen from 4.7 sen.

Revenue fell 4.41% to RM260.04 million from RM272.05 million.

Pantech's filing showed the weaker performance is caused by the decline in local and export demand by both its trading and manufacturing divisions.

In view of the current low international oil price, Pantech is cautious with the challenges faced by the O&G industry in Malaysia and the region.

"With the continuous development of Refinery and Petrochemical Integrated Development (RAPID) complex and associated facilities in southern Johor, as well as the ongoing O&G investment in the industry, the group is aware of the short-term challenges, but is of the view that the long-term outlook of the O&G industries continues to be positive," it said.

Barring any unforeseen circumstances, the group expects its overall performance for the current financial year to remain satisfactory.

Pantech closed 0.5 sen or 0.79% lower at 62.5 sen today, for a market capitalisation of RM385.29 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)