CSE Global reported 22.0% higher revenue y-o-y of $141.1 million for 3QFY2022 ended September.
This was attributed to growth in project, time and material revenues across all geographic regions. Higher revenues in the Asia Pacific region were mainly attributable to higher mining and minerals and infrastructure project revenue in Australia. Also, higher revenues from the Americas were driven by both the energy and infrastructure sectors, says the company in a Nov 17 press release.
Revenue improved across all three business sectors in 3QFY2022. Revenue in the Energy segment increased by 7.1% y-o-y to $72.4 million in 3QFY2022, mainly attributed to more project and time and material revenues recognised in the Americas.
Infrastructure revenue improved by 44.8% y-o-y from $37.0 million in 3QFY2021 to $53.6 million in 3QFY2022, mainly driven by higher revenue contributions across all key geographies in Australia, Singapore, United Kingdom and USA.
Mining & Minerals revenue increased by 37.7% y-o-y, as projects are progressing as compared to delays in project execution in 3QFY2021.
About 52.6%, or $86.8 million, of new orders were secured by the Group’s Energy sector in 3QFY2022, as compared to $73.8 million in 3QFY2021, representing a 17.7% increase. This was mainly due to higher field services orders in the Americas.
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In 3QFY2022, new orders for the Group’s Infrastructure sector rose by 53.2% y-o-y to $55.1 million. This was due to several wastewater and industrial project orders secured in the Americas region arising from increased infrastructure spending.
The Mining & Minerals Sector clinched S$23.0 million worth of new orders in 3QFY2022, compared to $10.6 million in 3QFY2021, mainly a result of a steady pipeline of orders for radio communication network projects from mining customers in Australia.
With these new orders, the Group closed 3QFY2022 with an order book of $412.8 million.
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Lim Boon Kheng, group managing director of CSE Global, says: “We are seeing strong momentum in orders received in 3QFY2022, where our total orders in the first nine months of 2022 have already surpassed that of the whole of 2021. This points to promising potential in terms of the healthy demand for our solutions, despite an uncertain operating environment impacted by continued supply chain disruptions and inflationary pressures.”
Lim adds: “Despite these uncertainties in the coming months and expected impact on our gross margins as a result of prolonged project execution timeframes and inflationary pressures, the Group envisages strong potential to grow orders across the various sectors. We also expect to see a steady inflow in terms of contribution, with the execution of these contract wins stretching over 2023 and beyond.”
CSE Global announced a $33.4 million rights issue in October. In a Singapore Exchange filing on Oct 10, the company says it intends to issue over 102.4 million new ordinary shares at 33 cents per share. Shares of CSE Global then closed 12.04% down on Oct 11.
Shares in CSE Global closed 1 cent higher, or 2.9% up, at 35.5 cents on Nov 17.