Pantech doubles its earnings in 2QFY23 on higher deliveries to O&G sector, robust export demand

KUALA LUMPUR (Oct 18): Pipes, valves and fittings manufacturer Pantech Group Holdings Bhd doubled its earnings in second quarter ended Aug 31, 2022 (2QFY23) on the back of higher deliveries to local oil and gas (O&G) projects, coupled with robust export demand for both its carbon steel and stainless steel products.

Net profit rose to RM31 million or 3.78 sen per share for 2QFY23, from RM15.31 million or 2.02 sen per share a year ago. The group declared a second interim dividend of 1.5 sen per share, with ex-date on Dec 29.

Pantech made nearly twice as much in revenue with RM269.97 million for 2QFY23, from RM136.49 million in the previous year.

Cumulatively, the group's net profit for the six months ended Aug 31, 2022 (1HFY23) rose by 88% to RM57.4 million from RM30.5 million in the previous corresponding period, while revenue grew 90% to RM540.66 million from RM284.99 million.

Going forward, Pantech said the robust oil prices are likely going 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 said in a stock exchange filing on Tuesday (Oct 18).

Nonetheless, the group acknowledged O&G demand risks arising from inflation and geopolitical uncertainties. It pledged to enhance its competitiveness as a major pipes, valves and fittings solutions provider to the O&G industries, related upstream and downstream industries.

Shares of Pantech, which have gained 16.5% year-to-date, closed unchanged at 63 sen per share on Tuesday, giving it a market capitalisation of RM529.18 million.