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New order growth may slow but CSE Global to enjoy support from 'essential' contracts

Amala Balakrishner
Amala Balakrishner • 8 min read
New order growth may slow but CSE Global to enjoy support from 'essential' contracts
“So far for us, there has been no material negative impact on our operations till March, but we are not sure how our order book and revenue will pan out from April onwards,” says CSE’s Managing Director.
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SINGAPORE (May 29): Things are looking up for systems integrator CSE Global, despite the ongoing health-turned-economic crisis and resulting oil prices slump. The company clinched $127.2 million in new orders for 1QFY2020 ended March, across its operations in oil and gas (O&G), infrastructure and mining. This is a 46.6% increase from the $86 million worth of orders secured in 1QFY2019, the company announced on May 4.

The bulk of the 1Q orders of some $87.8 million came from customers in the O&G sector, while $25.5 million was from its infrastructure operations. The remaining $13.9 million comes from the mining sector. Together with existing projects, CSE’s order book amounted to $302.7 million as at March 31, up 66.9% from 1QFY2020.

Managing director Lim Boon Kheng says he is “pleased with the good order intake”. However, he is bracing himself for a hit in orders and a consequent decline in the company’s earnings for this FY2020 ending Dec 31. “The current market environment presents numerous uncertainties going forward in terms of the Covid-19 pandemic, low oil and gas prices and a weak global economic environment,” he tells The Edge Singapore in an interview.

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