CSE Global has secured $146.1 million worth of new orders for the 3QFY2025 ended Sept 30, 21.7% lower y-o-y. This brings the total number of new orders for the 9MFY2025 to $512.8 million, 9.3% lower y-o-y.
The order intake for the third quarter was impacted on a y-o-y basis by unfavourable foreign exchange (forex) movements, especially from the US dollar (USD) and Australian dollar (AUD). On a constant currency basis, the group’s order intake would have increased by 2.7% y-o-y.
In 3QFY2025, CSE’s electrification business segment secured $48 million, 38.7% y-o-y, extending its 57.4% y-o-y decline in 3QFY2024.
Communications segment increased by 24.2% y-o-y to $75.2 million mainly from new orders secured through recently acquired companies in the communications segment in the US.
The automation business segment clinched orders of $22.9 million, 52.1% lower y-o-y, mainly attributed to the absence of greenfield orders in the oil and gas sector that were received in 3QFY2024 but not repeated this year.
“While the global operating environment remains uncertain, our underlying operations remain strong. We continue to take a disciplined approach to tendering and project selection, with a focus on quality execution and sustainable returns,” says Lim Boon Kheng, group managing director and CEO of CSE Global. “Our strategic emphasis on high-growth sectors supported by global megatrends will strengthen the resilience of our order book and position us for sustainable, long-term value creation.”
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Issuing of new warrants
In a separate announcement, CSE Global says it has agreed to grant 62.97 million new warrants to purchase shares to a wholly-owned subsidiary of its customer, Amazon. The group entered into a transaction agreement with the US tech firm on Nov 10.
Each warrant represents the right to acquire one share in CSE Global at the exercise price of 76.71 cents, or at a 7% discount to the volume-weighted average price (VWAP) for trades done on Nov 9, at 82.45 cents per share. The right will expire at 5pm Seattle time on Nov 9, 2030. The warrants will not be listed on the Singapore Exchange’s Mainboard.
The warrant shares, if fully converted, represent 8.7% of the shares of the current share capital of CSE Global and 8% of the enlarged capital.
The warrant shares are subject to vesting based on qualifying payments for the purchase of all products and services by or on behalf of Amazon and its affiliates over the term of the Warrant, with full vesting occurring if and when such qualifying payments total US$1.5 billion.
If both parties maintain a continued commercial relationship six months before the warrant expires, they will both negotiate to agree on future warrants to be issued.
The warrants may be exercised through cash payment of the exercise price or by way of a cashless exercise by reducing the number of warrants and warrant shares obtainable upon the exercise of the warrants in lieu of paying the exercise price in cash based upon the fair market value of the warrant shares at time of exercise.
According to CSE Global, the issuing of the warrants is connected to “certain commercial agreements” with its customer. It will also allow the company to raise funds for operating expenditure and strengthen its capital base.
The warrants will be allotted and issued under the general share issue mandate granted by shareholders at this year’s annual general meeting (AGM) in April.
Shares in CSE Global closed 1 cent higher or 1.22% up at 83 cents on Nov 10.
