| CSE Global looks to have sailed through the tumultous 1Q2020 caused by Covid-19 outbreak relatively unscathed. The global technology solutions provider announced it secured about S$127.2 million of new orders in 1Q2020, which was 46.6% higher y-o-y compared to S$86.8 million (on a continuing operations basis). CSE said at end-1Q2020, it had an outstanding orderbook of S$302.7 million.
At the start of 2020, it had an orderbook of S$307 million which, by the way, was its highest order backlog in five years. Taking into account its end-1Q2020 orderbook and the new order intake just announced, the revenue that was booked for 1Q2020 would have been S$131.5 million (ie $307 m - $302.7 m + $127.2 m). Compared with S$85.4 million in 1Q2019, the growth was an excellent 54% y-o-y. |
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CSE is a leading systems integrator, focusing on the provision and installation of a variety of control systems as well as turnkey telecommunication network and security solutions.
The growth in new orders in 1Q2020 was broad based across all industry segments.
|
(S$’000) |
Order intake |
|
|
|
Industry Segments |
1Q2020 |
1Q2019 |
Change |
|
Oil & Gas |
87,793 |
65,118 |
34.8% |
|
Infrastructure |
25,458 |
17,149 |
48.4% |
|
Mining |
13,947 |
4,484 |
211.0% |
|
Total |
127,198 |
86,751 |
46.6% |
|
(S$’000) |
Order Book end of 1Q |
|
|
|
Industry Segments |
1Q2020 |
1Q2019 |
Change |
|
Oil & Gas |
173,082 |
51,967 |
233.1% |
|
Infrastructure |
114,073 |
126,521 |
(9.8%) |
|
Mining |
15,501 |
2,905 |
433.6% |
|
Total |
302,656 |
181,393 |
66.9% |
Of the S$87.8 million of new orders secured by CSE’s oil & gas sector in 1Q2020, the onshore oil and gas business registered a 45.5% year-on-year growth while the offshore oil and gas business, 24.8% year-on-year growth.
Note that the oil price war took place only in early March, followed by a plunge in oil price.
Notably, new orders in the mining sector soared to S$13.9 million, more than triple that of 1Q2019.
As at 31 March 2020, the overall order book remained robust at S$302.7 million, a 66.9% growth over 1Q2019.
 Mr Lim Boon Kheng (photo), Group Managing Director of CSE, said, “We are pleased with the good order intake for 1Q2020. However, the current market environment still presents numerous uncertainties going forward: COVID-19 pandemic, low oil & gas prices and weak global economic outlook. Though CSE expects to be negatively impacted from these uncertainties in the coming months, the magnitude of the impact on CSE cannot be accurately determined at this point of time.” |