CSE Global obtained a contract extension worth US$36.5 million to design, engineer, fabricate, install and integrate power management systems and solutions in the Americas region.
The contract is linked to an initial contract bagged in Q1 2022 for the data centre market and will be executed from Q1 2024 to Q4 2025, the automation solutions provider said on Thursday (Apr 18).
CSE group managing director Lim Boon Kheng expects the project to contribute positively to CSE’s financial performance for the 2024-2025 financial years. The group does not believe it will have any material impact on its consolidated net tangible assets per share or earnings per share for the current financial year.
Lim said the data centre market continues to grow due to increased demand for cloud services.
“We are also investing to double our manufacturing and integration capacity to support this contract.”
In December, CSE Global obtained two major contracts worth S$27.7 million in the US. The first was for the design, engineering and supply of power distribution centres for manufacturing fabs, while the second was for the design, engineering, procurement and installation of environmental systems and equipment.
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As part of its diversification strategy, the group has been actively expanding its provision of critical communications services – or closed networks – to government agencies and large multinational corporations.
CSE Global’s shares were trading 2.4 per cent or S$0.01 lower at S$0.41 as at 11.41 am on Friday.
