ST Engineering Secures Contracts Worth $1.5b for 2Q2019
Singapore Technologies Engineering Ltd (ST Engineering), a global technology, defence and engineering group today announced that its Aerospace and Electronics sectors have secured new contracts with a combined value of about $1.5b for the second quarter (2Q) of 2019. This is in addition to the $1b contract announced on 24 April for the design and construction of the first Polar Security Cutter for the Department of the U.S. Navy. The contract includes options for two more vessels, which when exercised would bring the total contract value for the three vessels to about $2.6b.
Contracts by the Aerospace sector worth about $809m
The Aerospace sector received a number of contracts, from airframe to engine MRO services and support. These contracts include a multi-year agreement from a long-time customer to provide heavy maintenance services to their entire fleet of Boeing 717s, agreements from AirAsiaX Berhad and Beibu Gulf Airlines also for heavy maintenance, and a number of agreements for engine maintenance.
The sector gained further traction in its unmanned aerial solutions with a contract win for its latest smart drone system, DroNet, to be applied in security and surveillance missions as an end-to-end solution.
Contracts by the Electronics sector worth about $702m
The Electronics sector received new orders globally worth $702m for smart mobility, satellite communications, Internet of Things (IoT), cybersecurity, public safety and security, and defence. A key new win by its smart mobility business was for the provision of rail electronics solutions including train-borne communications, Platform Screen Doors (PSD), Automatic Fare Collection (AFC) and Supervisory Control and Data Acquisition (SCADA) systems to Taiwan’s Taoyuan MRT Green Line. The business also delivered a Maintenance Management System to China’s Foshan Metro Line 2 and Gaoming District Tram.
In Singapore, the Electronics sector continued to help customers realise their Smart City initiatives by transforming their operations through automation and digitalisation. Contracts were secured for the installation of smart indoor lighting control solutions to maximise energy savings and operational efficiency in residential estates and carparks. The sector also received a contract from PSA to develop an advanced Command Centre that enables digitalisation, automation and intelligent decision-making for Tuas port operations.
In the U.S, its Training and Simulation business received a contract worth US$95m from the U.S. Army to develop and deliver a unified simulation platform for the Army’s synthetic training environment that meet demands for next generation collective training.
In addition to these contracts, the Group has other contract wins by its other business sectors not disclosed in this announcement due to customer confidentiality.
The above developments are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
All figures are denominated in Singapore dollars unless indicated otherwise.
ST Engineering is a global technology, defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors. The Group employs about 22,000 people across offices in Asia, the Americas, Europe and the Middle East, serving customers in the defence, government and commercial segments in more than 100 countries. With more than 500 smart city projects across 70 cities in its track record, the Group continues to help transform cities through its suite of Smart Mobility, Smart Security and Smart Environment solutions. Headquartered in Singapore, ST Engineering reported revenue of $6.7b in FY2018 and it ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, MSCI Singapore, SGX ESG Transparency Index and SGX ESG Leaders Index.