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ST Engineering nabs US Coast Guard shipbuilding contract worth up to US$1.94b

ST Engineering_HPIBsingle_ship.jpg
Artist's impression of the heavy polar icebreaker that VT Halter Marine will be constructing for the US Coast Guard.

ST Engineering announced on Wednesday that its US shipbuilding business, VT Halter Marine, has won a US$745.9 million contract from the US Navy for the design and construction of a heavy polar icebreaker for the US Coast Guard. The contract includes options for the two additional ships, which if exercised would bring its total value to US$1.94 billion.

VT Halter Marine will be prime contractor for the detail design and construction of the US Coast Guard Polar Security Cutter (PSC). The PSC contract is a multi-year programme to acquire up to three heavy icebreakers for the US Coast Guard. 

The first ship delivery is scheduled for 2024, with the second and third vessels expected to be delivered in 2025 and 2027 respectively if the options are exercised.

The vessels are 460 feet in length with a beam of 88 feet overall, with a full load displacement of about 33,000 long tons at delivery.

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VT Halter Marine was involved in the design analysis study of the PSC since February 2017 and is currently taking part in the production engineering studies support work since February 2019.

The deal is 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.

As at 9.38am, ST Engineering shares were up 1.06 per cent, or four Singapore cents, at S$3.81.