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CSE Global posts 3.9% rise in Q2 net profit to S$4.5m

MAINBOARD-LISTED CSE Global on Wednesday reported a 3.9 per cent rise in net profit to S$4.5 million for the second quarter, in line with higher revenue from its key markets and improved margins. 

The group, which deals in both oil and gas and engineering, saw revenue tick up 8.4 per cent to S$99.9 million for the three months to June 30. The lift came from increased revenue recognised from mining projects in Asia-Pacific and greenfield projects in the Americas. 

Revenue from the Americas - the group's largest market - was up 2.1 per cent to S$59.8 million. Contributions from Asia-Pacific, its second-largest market, also surged 23.3 per cent to S$37.8 million.

Gross margins were also 90 basis points higher at 27.8 per cent. 

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For the quarter, CSE secured S$106.3 million worth of new orders from both greenfield and brownfield projects, taking the order book to S$188.1 million.

Second-quarter earnings per share came in at 0.88 Singapore cent, up from 0.84 cent. 

CSE has declared an interim dividend of 1.25 Singapore cents per share, same as for the year-ago period. It will be paid out on Sept 13. 

The group also saw half-year net profit rise 1.9 per cent to S$10.2 million, on the back of a 0.5 per cent gain in revenue to S$185.3 million.

Revenue was boosted by higher contributions in Asia-Pacific and Europe, Middle East and Africa, although that growth was weighed by the Americas, which saw lower greenfield project revenues. 

These translated into earnings per share of 2.01 Singapore cents, compared with 1.94 cents in the previous year. 

In its outlook statement, the group said that conditions in the industry sectors which it operates "continue to remain uncertain". "Our customers remain highly focused on cost control and cash flow generation, resulting in a lack of investments in large greenfield projects."

That said, CSE expects to see "a steady flow of smaller projects" arising from its existing customer base. It also intends to maintain the full-year dividend of 2.75 Singapore cents per share for the financial year.