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ST Electronics clinches S$742m in contracts for Q4 2017; total new orders for 2017 stand at S$2.24b
SINGAPORE Technologies Electronics (ST Electronics), the electronics arm of Singapore Technologies Engineering (ST Engineering), has clinched around S$742 million worth of contracts in the fourth quarter of 2017.
This brings total new orders secured in the whole of 2017 to S$2.24 billion, ST Engineering told the Singapore Exchange in a filing on Friday.
The bulk of the latest tranche of deals, at S$498 million, were advanced electronics and information communications technologies (ICT) solutions contracts secured from various local and overseas customers.
This includes a contract worth US$72 million from Israel-based Arad Technologies for a smart sensor network system that will enhance smart cities management in China, Europe, India and the United States; a comprehensive electronics system for Raffles City Chongqing, an eight-tower city complex in China; as well as a communications system deployed in 12 hospitals across Hong Kong.
These projects will be completed progressively till 2022, said ST Engineering.
Another S$160 million in contracts were in relation to rail electronics and intelligent transportation projects, which will be completed progressively by 2024.
They include the supply of rail electronics systems for Thailand and the region, as well as for the delivery of the communications systems and control systems for Singapore's Circle Line Stage 6 and the Kim Chuan Depot Extension, which includes three new underground stations.
ST Electronics also bagged about S$84 million in satellite and broadband communications contracts from various government, telecom and enterprise users worldwide.
The projects, which included the installation of a VT iDirect Hub in Somalia and Mexico, will be completed progressively over the next three years.
ST Electronics president Ravinder Singh said the company has continued with its growth strategy, advancing its global track record in implementing smart city initiatives worldwide.
"As rapid technology shifts continue to challenge global businesses, we have built on our deep engineering expertise and indigenous capabilities, and intensified our efforts on developing innovative and industry-leading solutions to help businesses tackle increasingly complex challenges they face," he said.
Thee contracts 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.
Shares of ST Engineering closed flat at S$3.32 on Friday, before the announcement was made.