CSE Global has posted earnings of $15.1 million for 1H20 ended June, 47.7% higher than the $10.2 million logged in the corresponding period a year ago.
This comes on the back of a 39.1% y-o-y growth in revenue to $255.6 million, mainly led by higher revenues achieved in the Americas and the Asia-Pacific region.
Revenue in the Americas surged 51.7% y-o-y to $172.2 million mainly due to higher time and material, and greenfield project revenues, as well as revenues from inclusion of newly-acquired subsidiaries, Volta and Volta Properties.
In Asia Pacific, revenue grew 21.6% y-o-y to $81.4 million on higher recognition of revenues from the infrastructure and mining projects in Australia, as well as contribution from its newly-acquired subsidiary, RCS Telecommunications.
Group operating expenses increased 63.1% y-o-y to $61.5 million, primarily due to higher personnel costs on increased headcounts from the newly-acquired subsidiaries.
Gross profit grew 52.5% y-o-y to $77.4 million, while gross profit margin rose 2.7 percentage points to 30.3% for the half-year period.
Operating profit rose 21.9% y-o-y to $15.9 million, which included a higher exchange gain of $2.3 million.
The group’s order intake rose 25.7% y-o-y to $242.1 million driven by growth in new orders from all industry segments. Accordingly, the group’s outstanding order book surged 56.6% y-o-y to $293.8 million.
Earnings per share for 1H20 stood at 2.96 cents, from the 2.01 cents a year ago.
CSE’s board has proposed an interim dividend of 1.25 cents for the half-year period, the same as last year. The interim dividend will be paid on September 15.
“We are pleased to deliver a commendable performance in 1H2020 despite the challenging business environment period. We are aware of the uncertainties ahead posed by COVID-19 pandemic, low oil & gas prices and weak global economic outlook. Despite these uncertainties in the coming months, the Group remains confident to achieve a financial performance for FY2020 similar to that recorded in FY2019,” says Lim Boon Kheng, group managing director of the group.
Shares in CSE Global closed flat at 53 cents on August 5.
