Shipbuilder Penguin International wins first prime contract with Singapore Navy
Under the contract, two landing craft will be built entirely in Singapore, using Penguin’s in-house capabilities
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[SINGAPORE] Mainboard-listed shipbuilder Penguin International on Tuesday (Aug 25) said it has secured a contract with the Ministry of Defence to build two landing craft for the Republic of Singapore Navy (RSN).
This is Penguin’s first naval shipbuilding programme as a prime contractor for the RSN in the shipbuilder’s 50-year history.
As a prime contractor, the firm is responsible for delivering an integrated platform that “meets the stringent operational requirements of the RSN”, it noted in a bourse filing.
The landing craft contract will be executed entirely in Singapore and draw upon Penguin’s in-house engineering capabilities.
Jeffrey Hing, executive chairman of Penguin, said: “(The award) marks (the company’s) entry into naval shipbuilding as a prime contractor and reflects the confidence placed in our people, our engineering capabilities and our global track record.”
The work will be carried out in Penguin’s Tuas Road shipyard, which is equipped with large fabrication workshops with overhead cranes that enable the landing craft to be built “entirely under cover”.
The shipyard also has a 500-ton marine travelift and a dedicated waterfront with 50 metre piers.
Penguin did not disclose the contract value and other details because of confidentiality obligations, but the group noted that the contract is expected to “contribute positively” to the group’s revenue and earnings from FY2027 and for the duration of the project.
In its recent FY 2026 earnings for the H1 period ended Jun 30, Penguin reported a 30.1 per cent increase in net profit to S$9.1 million, from S$7 million the previous year.
Revenue rose 12.6 per cent to S$137.4 million, from S$122 million in the year ago period.
The company’s share price has also risen close to 30 per cent in the year to date.
Before its latest contract win, Penguin had worked with the RSN as a subcontractor. It recently completed and delivered the first of six large carbon-fibre composite superstructures to defence company Saab for the RSN’s multi-role combat vessels.
Shares of Penguin rose 1.9 per cent or S$0.03 to S$1.65 on Tuesday before the announcement.
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