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CSE Global Q4 earnings up 60.1% to S$8.1m

MAINBOARD-LISTED CSE Global, which deals in both oil and gas, and telecommunications, posted a 60.1 per cent rise in fourth quarter net profit to S$8.1 million, from S$5.1 million a year ago.

Earnings per share stood at 1.60 Singapore cents for the quarter ended Dec 31, 2019, up from 0.99 cent a year ago, according to a filing on Wednesday night.

Revenue for Q4 rose 57.7 per cent to S$156.6 million, from S$99.3 million in the previous year. This was due to growth in group revenue, led by the Americas and Asia-Pacific regions, the company said. 

In particular, order intake in Q4 surged 59.2 per cent to S$230.1 million, led by two major oil and gas greenfield project orders worth S$103.7 million secured in October 2019, and supported by growth in flow orders for the quarter. 

A final dividend of 1.5 Singapore cents per share was recommended for the year, unchanged from a year ago. Once approved by shareholders at the April 16 annual general meeting, the dividend will be paid on May 12, after books closure on May 4. Including an interim dividend of 1.25 Singapore cents per share paid in September last year, total dividend for FY2019 will be 2.75 Singapore cents. 

For the full year ended Dec 31, net profit was up 19.6 per cent to S$24.1 million, while revenue gained 21 per cent to S$451.8 million. 

Lim Boon Kheng, group managing director of CSE Global, said: "Despite ongoing trade tensions, a global economic slowdown and the outbreak of Covid-19 virus, we anticipate a steady flow of orders from our existing clients, while we strive to haul in larger contract wins."

He added that looking ahead, the company will focus on growing its business organically and exploring value-accretive acquisitions to further enhance profitability. 

As at 3.49pm on Thursday, shares in CSE Global were trading flat at 54.5 Singapore cents. 

Geoff Howie, market strategist at the Singapore Exchange, noted that while the counter has seen a marginal decline since end 2019, daily turnover in the stock is up by more than 50 per cent to about S$1.1 million a day so far this year.