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Provisions to settle Iran issue drag CSE Global to S$13.8m Q2 loss
A HEFTY US settlement on alleged violations of Iran sanctions dragged down system integration and computer network system provider CSE Global to a S$13.8 million loss for its second quarter ended June 30, compared to a S$5.5 million profit a year ago.
Revenue was up 15 per cent to S$85.5 million, from S$74.3 million a year ago.
Operating profit for the quarter was down 45 per cent to S$3.8 million. This was due to lower gross margins from the oil and gas sector offsetting higher revenues from the Asia-Pacific, notably in infrastructure.
Provisions of S$16.8 million were made arising from an agreement in July 2017 with the US government to settle the company's potential civil liability for alleged violations of laws regarding US-dollar payments for non-US goods and services lawfully rendered to Iran or persons in there.
An interim dividend of 1.25 Singapore cents a share was declared, unchanged from a year ago.
CSE Global last traded at S$0.395, down half a Singapore cent.