KUALA LUMPUR (July 21): Pantech Group Holdings Bhd's net profit fell 11.34% to RM8.1 million in its first quarter ended May 31, 2016 (1QFY17) from RM9.1 million a year ago, on lower contribution from its manufacturing division that was affected by lower global demand from the oil and gas sector.

Competitive pricing was also a contributing factor to the weaker manufacturing performance, Pantech told Bursa Malaysia in a filing today.

Revenue fell in tandem by 10.6% to RM123.9 million in 1QFY17 from RM138.6 million last year.

The steel products maker declared a first interim single tier dividend of 0.5 sen for the financial year ending Feb 28, 2017 (FY17), which will be paid on Oct 19, 2016.

Going forward, Pantech said it is cautious on its outlook due to challenges that continue to beset the oil and gas (O&G) industry in Malaysia and the region.

It intends to focus and expand its existing revenue generating businesses and seek opportunities to grow its businesses both locally and overseas.

Specifically, it plans to expand its capacity as a major pipes, valves and fittings solutions provider to the O&G, related upstream and down-stream industries.

"With the continuous development of RAPID projects and associated facilities in southern Johor, the group is aware of the short-term challenges in the O&G industries, but is of the view that its long-term outlook remained positive.

"Barring any unforeseen circumstances, Pantech expects its overall performance for the current financial year to remain satisfactory," it said.

Its share price fell 1.5 sen or 2.52% to close at 58 sen for a market capitalisation of RM353.6 million.