Pantech 2Q net profit more than doubles to RM11.75m on RAPID projects
Supriya Surendran / theedgemarkets.com
October 24, 2017 19:09 pm MYT
KUALA LUMPUR (Oct 24): Pantech Group Holdings Bhd's net profit for the second financial quarter ended Aug 31, 2017 (2QFY18) more than doubled to RM11.75 million or 1.59 sen per share, from RM5.14 million or 0.7 sen per share a year ago.
In a filing with Bursa Malaysia today, the group attributed its increase in revenue and profitability to sales demand from both its trading and manufacturing divison and delivery in downstream oil and gas projects, namely Petroliam Nasional Bhd’s Refinery and Petrochemical Integrated Development (RAPID) project.
The group also attributed its increase in profitability to contributions from overseas markets.
Revenue for 2QFY18 increased by 51.3% to RM157.1 million from RM103.81 million a year ago.
For the first half of its financial year ended Aug 31, 2017 (1HFY18) Pantech’s net profit surged 94.4% to RM25.72 million or 3.48 sen per share, from RM13.23 million or 1.8 sen per share a year ago.
Revenue for 1HFY18 increased by 35.5% to RM308.6 million from RM227.75 million a year ago.
As for its prospects, Pantech which is a major pipes, valves and fittings solutions provider to the oil and gas industry said that it remains cautiously optimistic on the increased activities and development in the industry with the current oil price above US$50 per barrel.
“With the continuous development of RAPID projects and associated facilities in southern Johor, the group is poised to meet the requirement from these projects which are expected to be completed in 2019,” the group said.
Pantech shares closed up 1 sen or 1.43% to 71 sen today, and for a market capitalisation of RM515.94 million.
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