SINGAPORE (Aug 10): CSE Global reported a net loss of $13.8 million in 2Q17 compared to earnings of $5.5 million in 2Q16.
Revenue for 2Q17 rose 15.1% to $85.5 million from $74.3 million a year ago, amid the difficult business and operating environment.
This was mainly due to higher sales achieved in the Asia Pacific region, particularly in the Infrastructure industry sector.
In tandem with higher revenues, cost of sales rose a steeper 30.4% to $63.56 million. As a result, gross profit fell 14% to $22 million.
In 2Q17, operating expenses narrowed 2.3% to $18.1 million as compared to $18.6 million in 2Q16, mainly attributed to lower personnel costs of $0.6 million but offset by higher amortisation of intangible assets from new acquisitions of S$0.25 million.
An interim dividend of 1.25 cents per share will be paid on September 13.
In its outlook, Lim Boon Kheng, Group MD of CSE says, “Given the current economic and the oil and gas industry conditions, CSE expects to report weaker operating performance for the next quarter and FY2017 as compared to the same corresponding period in 2016, but it expects to remain in a net cash position at the end of the year.”
Shares in CSE Global closed at 40 cents on Thursday.
