CSE Global net profit jumps 90% in Q1

CSE Global has posted a first-quarter net profit of S$5.7 million, up 90 per cent from S$3 million in the same period a year earlier on broad-based growth across all industry segments, the group said.

Revenue in the three months to March 31 was S$92.17 million, up 23.7 per cent from the same period last year.

Revenue from customers in the oil and gas industry jumped 23.3 per cent to S$65.9 million. Turnover from infrastructure and power customers grew 24 per cent to S$23.7 million.

Gross margins in the first quarter was 26.8 per cent against 29.2 per cent in the first quarter last year, but still higher than the average gross margin of 26 per cent in all of 2017.

New orders received for the quarter was S$68.9 million, down 41.5 per cent from a year earlier. The first quarter is a seasonally slow quarter, the group said.

With lower orders received and higher revenues recorded in the quarter, the group ended the quarter with an outstanding order book of S$148.6 million.

CSE Global, a process control and communications network system integrator, said: "Despite the improved oil and gas and commodity prices, our customers remain highly focused on cost control and cash flow generation.

"The group currently has several large projects that will reach billing milestones in the second and third quarters of 2018, to which the group is confident of achieving a positive operating cashflow for 2018."

CSE ended the quarter with a net cash position of S$5 million, after reporting negative cash from operations of S$5.3 million in the first quarter, due mainly to increased work-in-progress and payments of accounts payables brought forward from 2017.

CSE added that it expects to be profitable in 2018, and will continue to explore acquisition opportunities.

Earnings per share was 1.11 Singapore cents, up from 0.58 Singapore cent in the first quarter last year.

Net asset value per share was 33.36 Singapore cents as at March 31, from 33.40 Singapore cents as at Dec 31.

CSE shares gained 2.33 per cent to close at S$0.44 on Wednesday before results were announced after market close.