CSE Global Q1 revenue up 5.8% on growth in infrastructure projects
Tessa Oh
REVENUE for mainboard-listed CSE Global rose 5.8 per cent to S$117.6 million in the first quarter ended Mar 31, 2022, from S$111.2 million in the year-ago period.
This came mainly from growth in the mainboard-listed company’s infrastructure projects in the Asia-Pacific, particularly from utility and government customers in Australia, it said in a business update on Tuesday (May 17).
Infrastructure grew some 56.6 per cent year on year to S$47.3 million in Q1, driven by higher revenue contributions across Australia, Singapore, the United Kingdom and the United States, due to increased investments in public and critical infrastructure.
Revenue from the mining and minerals sector rose 3.8 per cent year on year to S$12.3 million, as progress began to be made on projects with the easing of Covid-19 curbs. On the other hand, revenue from the energy sector fell 16 per cent year on year to S$58.1 million, following lower large-project revenues in the Americas region.
Order intake surged 118.8 per cent to S$232.3 million, largely from the company securing a major contract to provide engineering solutions for the data-centre market and higher field-services orders for the wastewater market in the Americas.
The group said it expects operational challenges brought on by supply-chain constraints will continue to weigh on its financial performance in the first half of 2022, though the situation is expected to improve in the second half.
It said: “While there was a lack of large greenfield projects in the energy sector, we continue to see stable financial performance in the infrastructure and mining and minerals sectors, supported by a steady stream of projects arising from requirements in digitalisation and enhancements in physical and cyber security.”
Despite the ongoing operational challenges, the group said it will continue to execute its book order, which stood at S$344 million at the end of Q1. It will also focus on improving its core business and expand into new geographical markets for all segments of its business, with a view to securing additional order opportunities in the coming months.
Shares of CSE Global last traded flat at S$0.47 on Tuesday, before the announcement was made.
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