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CSE Global's new orders down in Q3 on the back of oil and gas decline
TECHNOLOGY solutions provider CSE Global secured about S$91 million in new orders for the third quarter, down from the S$156.1 million in new orders a year ago.
The lower new orders this time around was mainly accounted for by the oil and gas, and mining and minerals segments, but partially offset by the growth in new orders in the infrastructure segment.
About S$48.4 million in new orders were secured by the group's oil & gas sector in the third quarter, with the decline attributed to the impact of the current oil and gas market environment, as well as from a one-time adjustment of order intake in Q32019, due to the consolidation of the order book of Volta, which was acquired at end of August 2019.
The infrastructure sector recorded 20.6 per cent growth in new orders in the third quarter, registering S$30.3 million. The mining and minerals sector pulled in S$12.3 million in new orders.
As at Sept 30, the order book stood at S$267.0 million, up 14.8 per cent over Q32019.
Lim Boon Kheng, the company's group managing director, said that the order intake was within its expectations.
"As we highlighted earlier, the current market environment still presents numerous uncertainties and challenges going forward: the Covid-19 pandemic, low oil and gas prices and a weak global economic outlook."
These developments are not expected to have a material impact on the consolidated net tangible assets per share or earnings per share of the group for the financial year ended Dec 31.
CSE Global's shares closed flat at 46 Singapore cents on Thursday, prior to the announcement.