Expansion of US energy sector could drive revenue growth for CSE Global, say analysts.
Maybank analysts have forecasted that recent policy changes under US President Donald Trump, aimed at boosting oil and gas (O&G) production, could significantly benefit Singapore-listed CSE Global. Trump’s executive actions, which focus on enhancing energy production and reducing consumer costs, include approving a range of projects such as drilling, pipelines, and power plants.
In a report released on January 20, Maybank analyst Jarick Seet explained that these policies could reignite opportunities for CSE Global, which has long been involved in O&G projects in the US. While the company shifted focus towards electrification in recent years due to a slowdown in O&G projects, the new policies could increase demand for maintenance work, leading to higher revenues.
The declaration of a “national energy emergency” and subsequent executive orders are expected to increase US energy output and lower electricity and petrol prices. Maybank predicts this will stimulate further O&G projects, aligning with CSE’s strategic interests.
CSE Global also recently announced plans to sell a US property for US$29.3 million, with plans to reinvest the proceeds into a larger facility in the US, possibly located in a state offering favourable tax incentives. Seet noted that this expansion would significantly enhance CSE’s ability to capitalise on the growing opportunities in electrification and data infrastructure in the US.
Maybank has maintained a “buy” rating on CSE Global, with a target price of S$0.64, reflecting the company’s promising growth potential. The stock saw a modest increase of 1.1% to S$0.45 on Wednesday, with investors showing confidence in the company’s future prospects, particularly following its inclusion on Singapore’s Fastest Growing Companies list and a 44% revenue increase between 2020 and 2023.
