Lower demand for oil pipes and valves hurts Pantech 3Q earnings 


KUAL A LUMPUR: Pipes and valve supplier Pantech Group Holdings Bhd said earnings declined in the third quarter ended Nov 30, 2020 on lower contribution from its trading division.

Net profit fell 15% to RM8.7mil from RM10.27mil a year ago. Revenue dropped to RM133mil from RM166mil previously.

"The lower revenue was mainly due to the decrease in sales demand in local oil and gas sectors for the current quarter," Pantech said in a filing with Bursa Malaysia today.

"A lower profit before tax was reported mainly due to changes in product mix and higher operating expenses," it added.
Going forward, the group said it remained cautious on the impact of continuous COVID-19 outbreak around the world and its resurgence in Malaysia to the economic activities and the challenges faced by the oil and gas industries.

"The Group will prudently continue to focus on its existing revenue generating businesses and seek opportunities to grow its businesses, both local and overseas, by enhancing it’s competitiveness as the major pipes, valves and fittings solutions provider to the oil and gas industries, related upstream and downstream industries," it said.

"The Group will seek to secure orders from it’s customers aggressively from both domestic and export markets," it added.

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