CSE Global's 1Q13 order book declined to $361.1m

Blame it on lower new orders.

According to OCBC, CSE Global reported 1Q13 results that were in-line with estimates. 1Q revenue fell 10.9% YoY to S$120m on lower contribution from the Americas and EMEA (Europe, Middle East & Africa), while PATMI was flat at S$12.7m.

The improvement in net margin (1Q13: 10.5%; 1Q12: 9.4%) was due to (i) lower amount of zero-margin revenue in the Middle East (as the loss-making projects were nearing completion), and (ii) a larger amount of high-margin offshore work in the Americas. 

Here's more from OCBC:

After encountering issues in the Middle East in 2011 (cost overrun at two large telco projects) and the Americas in 2012 (lower-thanexpected margins for onshore work), CSE Global now appears to be more keen on the higher margin brownfield projects, while carefully re-evaluating the lower-margin greenfield jobs.

Against this backdrop, its order-book declined to S$361.1m as of end 1Q13 (end 4Q12: S$384.5m) as the new orders secured (S$95.4m) were lower than its normal run-rate of S$120-140m per quarter.

However, management assured us that the existing order-book consists largely of goodmargin jobs.