CSE Global Limited announced, on July 26, that it has secured $104.4 million worth of new orders in the 2QFY2021.
Of the amount, some $49.8 million of new orders were brought in by the group’s energy sector, lower than the $53.8 million that were brought in during the 2QFY2020.
The lower orders were due to delays in project awards and the slower-than-expected recovery in demand for industrial automation systems and services in the sector.
New orders for the infrastructure sector rose by 8.4% y-o-y to $41.4 million due to higher orders of radio communication and solutions, mainly driven by the Australian government.
The mining and minerals sector clinched about $13.2 million of new orders in the 2QFY2021, which includes a greenfield mining project of A$9.2 million to supply radio communication equipment and solutions in Australia.
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The orders bring the group’s order book to a total of $212.1 million for the 2QFY2021.
“Amid the pandemic and uncertain economic environment, it was encouraging to note that the group had continued to secure quarterly orders in excess of $100 million, mainly driven by the non-Energy sectors,” says Lim Boon Kheng, group managing director of CSE.
“The rise in new orders for the Infrastructure sector shows promise, as more investments for public infrastructure projects are funded to support increasing requirements for digitalisation, automation, and physical and cybersecurity. We continue to see a steady stream of orders for the Mining & Minerals sector for the last few quarters, supported by higher commodity prices.”
“In the Energy sector, business activities continue to be affected by the uncertainties in the energy and material prices, as well as from supply chain and manpower resource disruptions, caused by the Covid-19 pandemic. Against this backdrop, we remain selective in the pursuit of orders in the Energy sector, to ensure we continue to deliver profitability and generate positive cashflow in these projects and be sustainable in the long term,” he adds.
Shares in CSE closed flat at 51 cents on July 26.
Photo: Bloomberg
