Despite a difficult year for oil and gas where prices cratered into negative territory, CSE Global has outperformed analyst expectations as it recorded a net profit of $28 million in FY2020 ended December. This is 14% more than DBS’s estimates of $24.5 million. 

“CSE’s Infrastructure and Mining & Mineral segments acted as the strong pillar of support amidst the challenging environment in its Oil & Gas segments in FY2020. New order book continued to grow by 22% each in both segments in FY20,” writes the DBS team in a market insight piece for the research house on Feb 25. 12MFY2020 Oil & Gas segment orders declined in FY2020 due to the high base effect of greenfield projects in FY2019. 

With Infrastructure and Mining & Minerals increasing in profitability as some projects move to the more profitable commissioning and finalising stages vis-a-vis the procurement stage, FY2020 EBIT margin exceeded DBS’s 7.1% estimate by 0.7 percentage points (ppt) at 7.8%. In particular, Infrastructure EBIT rose 2.5 percentage points y-o-y to 13.7% in FY2020 from 11% in FY2019. 

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