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CSE Global Q3 net profit up 67%

CSE Global has posted a net profit of S$5 million in the third quarter, up 67 per cent from the same period a year earlier on growth in revenue and gross margins, driven by higher takings from oil and gas customers in the Americas.

Revenue in the three months ended Sept 30 rose 8 per cent to S$92.4 million. Gross profit margin rose to 27.5 per cent from 25.1 per cent in the third quarter last year. In 2017, the group's gross margin was 26 per cent.

Earnings per share was 0.99 Singapore cent, up from 0.58 cent in the third quarter last year.

Net asset value per share was 32.26 Singapore cents as at Sept 30, from 33.71 cents as at Dec 31 last year.

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New order intake in the third quarter fell 6.4 per cent to S$80.9 million. The total order book decreased from S$148.8 million a quarter ago to S$136.5 million as more projects were completed and billed.

Group chief executive Lim Boon Kheng said in a results filing on Wednesday: "The current improvement in oil and gas and commodity prices has not translated into significant investments in large greenfield projects in the markets that we operate. Customers remain focused on cost control and cashflow generation. Notwithstanding, we continue to see a steady flow of smaller projects in the US and Australia."

CSE Global, a process control and communications network system integrator, said it will continue to focus on its profitability and gross margins by supporting and servicing its existing installed base of customers more closely. It is also actively exploring acquisition opportunities to build its footprint in the Americas and Australia, it added.

Net profit for the nine months ended Sept 30 was S$15 million, on revenue of S$276.7 million. CSE Global said it expects operating net profit this year to beat last year's.

CSE Global shares rose 1.5 Singapore cents or 3.41 per cent to close at S$0.455 on Wednesday before results were announced after market close.