CSE Global reports 1Q19 net profit rose slightly on higher infrastructure project revenue

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CSE Global reported Monday its first quarter net profit attributable to equity owners rose 0.5 percent on-year to S$5.73 million, despite a drop in revenue, amid increased infrastructure project revenue with higher gross margins.

Revenue for the quarter ended 31 March fell 7.4 percent on-year to S$85.36 million on lower large greenfield revenue recognized and a delay in delivery schedules for some projects in the Americas, CSE Global said in a filing to SGX after the market close.

The gross profit margin rose by 90 basis points on-year to 27.7 percent in the quarter, the filing said.

The company said its core profit after tax rose 5.3 percent on-year to S$4.59 million.

“We are pleased to record an improvement in core profitability for the first quarter of 2019, in spite of the uncertainties posed in the global macroeconomic landscape,” Lim Boon Kheng, group managing director of CSE, said in the statement.

“Our endeavors in growing our geographical footprints and expanding our businesses continue to yield positive results,” he added.

In its outlook, the company said it expected 2019 earnings to be stronger.

“We anticipate an increase in activities albeit a more stable pricing environment in the markets we serve. Consequently, we expect improvement in our financial performance,” CSE Global said.

“Notwithstanding the market uncertainties, we are confident in generating positive operating cash flow for 2019. As a group, we are continuously looking out for value accretive and strategic acquisitions to grow our business,” it added.

But it said it expected the “lull” in large greenfield projects for oil and gas would persist.

New orders in the quarter were at S$87.5 million, up 26.9 percent on-year, bringing the outstanding order book to S$182.2 million, CSE Global said.

CSE Global provides services for the oil and gas, infrastructure and mining sectors.


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