KUALA LUMPUR (Jan 18): Pantech Group Holdings Bhd’s net profit dropped 38.98% to RM21.15 million for the third quarter ended Nov 30, 2023 (3QFY2024) from RM34.66 million the year before, mainly due to softer sales in both its trading and manufacturing divisions.

The pipes, valves and fittings manufacturer recorded RM221.44 million revenue for 3QFY2024, down 26.17% from RM299.94 million a year earlier.

Pantech declared a 1.5 sen per share dividend for the quarter, to be paid on March 26, bringing its year-to-date total dividend to 4.5 sen per share.

According to the group’s filing, its trading division’s revenue fell 34.18% to RM109.67 million from RM166.61 million, while profit before tax (PBT) sank 35.39% to RM9.02 million from RM13.96 million, amid softer sales demand from local oil and gas (O&G) industries.

Its manufacturing division registered RM111.77 million revenue for the quarter, down 16.17% from RM133.3 million the prior year, while PBT tumbled 43.63% to RM18.98 million from RM33.67 million dragged by lower demand for stainless steel products and lower average selling prices.

For the nine months ended Nov 30 (9MFY2024), Pantech’s net profit declined by 16.85% to RM76.55 million from RM92.06 million, as revenue fell 14.71% to RM716.95 million from RM840.6 million.

On prospects, Pantech said the robust oil price is likely to bring a positive impact to its related capital activities such as increased spending in facilities maintenance and upgrading activities in the O&G industry.

“Projects earmarked are expected to begin implementation in the next financial year and the group will actively participate in international trade exhibitions. This in turn will improve the demand for our products in both domestic and international markets,” it said.

On the economic front, the group is watchful of the economic risks from ongoing geopolitical conflicts, high interest rate and inflation that may hinder current economic growth as well as O&G demand.

“The group will prudently continue to strengthen its existing revenue generating businesses and operation productivity, seek opportunities to grow its core businesses, both local and overseas, by enhancing its competitiveness as the major pipes, valves and fittings solutions provider to the O&G and related upstream and downstream industries,” it added.

Shares of Pantech closed unchanged at 90 sen on Thursday, giving the group a market capitalisation of RM765.79 million.