GlobalData estimates value of ST Engineering’s naval contract at US$1.2 billion

FOLLOWING the contract win by a unit of ST Engineering : S63 0% to construct six military vessels for the Singapore Navy, GlobalData estimated this would bring in US$1.2 billion in revenue for the company, with each vessel valued at US$200 million.

The announcement by ST Engineering, which was posted on the Singapore Exchange on Mon (Mar 27), stated that the six vessels would be delivered progressively from 2028.

The contract was not expected to have any material impact on either the net tangible assets per share or the earnings per share of the company for the current financial year, it added.

In addition to bolstering Singapore’s navy, the programme to build these vessels will also help the Republic’s defence sector and gain potential for exports to numerous Asia-Pacific countries, said Akash Pratim Debbarma, defense analyst at GlobalData.

ST Engineering said the vessels, known as Multi-Role Combat Vessels (MRCVs), are designed to function as a mothership and can operate a range of manned and unmanned systems in a flexible, intuitive and integrated manner.

“The new MRCV will harness the ‘multiplier effect’ of digital technologies, to meet the Republic of Singapore Navy’s requirements for faster, more efficient operations,” said Ng Sing Chan, president of marine business at ST Engineering – the unit which won the contract awarded by the Ministry of Defence.

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“This contract affirms our capabilities to design and build large and complex naval vessels,” he added.

ST Engineering shares were up 0.8 per cent, or S$0.03, at S$3.65 as at 3.32 pm.