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ST Engineering bags S$1.5b in new aerospace, electronics contracts

SINGAPORE Technologies Engineering's (ST Engineering) aerospace and electronics sectors have secured new contracts worth about S$1.5 billion in total for the second quarter of 2019, the integrated engineering group said on Thursday.

This is in addition to a S$1 billion contract announced on Apr 24 to design and construct the first Polar Security Cutter for the Department of the US Navy.

The aerospace contracts amount to about S$809 million, ranging from airframe to engine maintenance, repair and operations services and support. They include a multi-year agreement from a long-time customer to provide heavy maintenance services for their entire fleet of Boeing 717s, agreements from AirAsiaX Berhad and Beibu Gulf Airlines for heavy maintenance, and a number of engine maintenance agreements.

The sector also secured a contract for its latest smart drone system DroNet to be applied in security and surveillance missions as an end-to-end solution.

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The electronics sector received new orders globally worth about S$702 million for applications including smart mobility, satellite communications and Internet of Things. One of its key contract wins involves providing Taiwan's Taoyuan MRT Green Line with rail electronics solutions including train-borne communications, platform screen doors, automatic fare collection and supervisory control and data acquisition systems.

It also secured contracts in Singapore to install smart indoor lighting control solutions in residential estates and carparks, as well as a contract from PSA to develop an advanced Command Centre to enable digitalisation, automation and intelligent decision-making for Tuas port operations.

In the US, the sector's training and simulation business received a US$95 million contract from the US Army to develop and deliver a unified simulation platform for the Army's synthetic training environment.

ST Engineering said that in addition to these contracts, the group has other contract wins by its other business sectors, which it did not disclose due to customer confidentiality.

It does not expect these developments 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.

ST Engineering shares closed flat at S$4.29 before the announcement.