Engineering firm CSE Global has reported revenue of $502.8 million for FY2020, up 11.3% over FY2019. Thanks to better margins, the company’s earnings increased by 16.4% y-o-y to $28 million.
Lim Boon Kheng, group managing director calls the FY2020 numbers commendable. “However, the current market environment still presents numerous uncertainties going forward: Covid-19 pandemic, oil & gas prices and global economic outlook,” he warns.
“Despite the uncertainties in the coming months, the group remains confident to achieve a satisfactory financial performance for 2021,” he says.
SEE: CSE Global secures 57.2% lower orders of $98.4 mil for 4Q20
The company plans to give a final dividend of 1.5 cents per share, which is on top of an interim dividend of 1.25 cents already paid. The total dividend represents a payout ratio of 50.2% its FY2020 earnings.
During the year, the company’s order intake dropped by 25.5% to $431.5 million, as a result of lower orders in the oil and gas segment. However, there were more orders from its customers in infrastructure and mining. As at Dec 31 2020, its order book stood at $236 million.
Last July, Heliconia Capital, a subsidiary of Temasek Holdings, acquired the controlling stake in CSE Global from its previous controlling shareholder, Malaysia's Serba Dinamik.
CSE Global closed Feb 23 at 50 cents, down 1%.
