KUALA LUMPUR (Oct 23): Pantech Group Holdings Bhd (KL:PANTECH) said its second quarter net profit fell 27% to RM20.74 million, from RM28.42 million a year earlier, hurt by lower sales delivery to local oil and gas (O&G) projects at its trading division, and foreign exchange losses.

Earnings per share for the quarter ended Aug 31, 2024 (2QFY2024) fell to 2.48 sen from 3.42 sen previously, according to the steel pipes, valves and fittings solutions provider’s bourse filing on Wednesday.

Revenue for the quarter was flat at RM252.14 million as the group saw higher sales in its manufacturing division, mainly export sales, which offset the lower sales in its trading segment which saw a decrease in domestic sales.

Pantech declared a second interim dividend of 1.5 sen per share, unchanged from a year ago, payable on Dec 20.
 
For the first half of FY2024, the group’s net profit fell 15.2% to RM47 million from RM55.4 million a year earlier, as revenue grew 2.6% to RM507.86 million from RM495.15 million.

On its prospects, the group said it is optimistic of its overall performance for the current financial year.

It said a sustained oil price will bring positive impact to increase spending in facilities maintenance and upgrading activities in the O&G industry. “This in turn will improve the demand for our products in both domestic and international markets,” it added.

Pantech’s shares closed two sen or 2.1% lower at 91.5 sen on Wednesday, giving the group a market capitalisation of RM782 million. Year-to-date, the stock is up 1.6%.