SINGAPORE (Feb 20): Technologies company CSE Global declared earnings of $4.9 million for the 4Q ended December, reversing back into profitability from its restated loss of $39.1 million due to improved margins.
This comes despite a 14.2% y-o-y decline in quarterly revenue to $100.1 million from revenue of $116.7 million a year ago, as gross margin improved to 30.2% in 4Q18 from 24.8% the previous year.
For FY18, the group posted earnings of $19.4 million compared to its loss of $46.9 million in FY17. This translates to an earnings per ordinary share (EPS) of 3.95 cents for FY18.
Revenue for the full year grew 4% to $376.8 million from $362.4 million due to improved gross margins, driven mainly by an improvement in the oil and gas (O&G) sector revenues in the Americas.
The group ended the period with a net cash position of $37.9 million.
As at end-Dec 2018, CSE generated cash inflow from operations of $56.3 million, attributed to better working capital management of projects.
A final dividend of 1.5 cents per share has been recommended, and is to be paid on May 17 this year.
This represents a dividend payout of 70.4% of the group’s FY18 net profit, after taking into account the interim dividend of 1.25 cents per share given in 1H18.
“Based on the current market momentum and order book in hand, we expect improvement in financial performance for 2019. Meanwhile, CSE will continue to explore value accretive and strategic acquisition opportunities to deliver sustainable growth,” says Lim Boon Kheng, group managing director of CSE.
Shares in the group closed 1 cent higher at 48 cents on Wednesday.
