CSE Global H2 net profit dips 1.7%, dragged by US$8 million settlement

SYSTEMS integrator CSE Global’s earnings slipped 1.7 per cent year on year to S$11.3 million in H2 FY2024 ended December, weighed down by an arbitration settlement of US$8 million.

The provider of electrification, communications and automation solutions did not provide details other than the sum of the settlement in its financial results published on Wednesday (Feb 26).

Revenue rose 15 per cent to S$432.3 million, driven by the electrification segment in the Americas and Asia-Pacific regions.

Electrification revenue climbed 27.6 per cent to S$218 million, mainly due to major contracts secured in FY2023 and new projects secured in FY2024.

Revenue contributions from the electrification, communications and automation business segments were 50.4 per cent, 27.4 per cent and 22.2 per cent, respectively.

Earnings per share stood at S$0.0162, marginally lower than the S$0.0187 for the year-ago period.

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The board has recommended a final dividend of S$0.0115 per share payable on Jun 11, bringing the total dividend payout – including the interim dividend of S$0.0125 – to S$0.024 for the full year.

For FY2024, revenue rose 18.8 per cent to S$861.2 million, primarily driven by the electrification and automation business segments in the Americas and Asia-Pacific.

Net profit stood at S$26.3 million, up 16.9 per cent. Earnings per share was S$0.0391, compared to S$0.0366 for FY2023.

The company’s order book stood at S$672.6 million as at end-December 2024, which puts CSE Global in a good position “to achieve a healthy financial performance in 2025”.

Lim Boon Kheng, chief executive officer of CSE Global, said: “We believe CSE stands to benefit from the growing data centre demand in relation to our electrification and communications focused strategies.

“With the recent acquisition of RFC Wireless, we have successfully penetrated the data centre communications market in the USA. In the coming months, we will further expand our capacity for the electrification business, particularly in the data centre market.”

The counter closed 1.1 per cent or S$0.005 higher at S$0.465 on Wednesday, before the financial results were published.