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.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Pantech , oil and gas


Next In Business News

Bitcoin extends downtrend, falls 12.1% to US$47,176
Perodua targets to deliver 30,000 units in December
CPO futures likely to trade higher next week
Georgieva says examining all IMF research processes to ensure integrity
Oil steadies, paring gains as rising COVID cases spur demand worries
Omicron-fuelled volatility deals hedge funds worst monthly return since March 2020
US-listed Chinese shares take a hit as Didi to exit NYSE
Didi shares plunge more than 20% on plan to delist from NYSE
Wall St ends lower on Omicron worries, Fed taper angst
Micro impact of new variant?

Others Also Read