ST Engineering obtains more than S$1.55b in new contracts in Q1

SINGAPORE Technologies (ST) Engineering on Wednesday said it obtained more than S$1.55 billion worth of new contracts in the first quarter of 2021.

The engineering conglomerate's defence and public security segment bagged the most contracts, bringing in S$610 million, excluding wins with customer confidentiality reasons, the group said in a business update.

Its commercial aerospace segment won S$573 million in new contracts, while its urban solutions and satellite communications brought in S$371 million for the first quarter.

The group's order book stood at S$15.7 billion in March 2021, a level higher than pre-Covid-19 figures, contributed by all business areas. It expects to deliver S$4.6 billion of the order book in the remaining months of 2021.

ST Engineering noted that its cost savings and productivity initiatives are "tracking well" and signs of business recovery have been observed for commercial businesses, albeit from a low base. The commercial aerospace segment is subdued as expected.

Separately on Tuesday, the group said its wholly-owned aviation asset management unit will set up a 50-50 joint venture (JV) with Temasek to build a US$600 million portfolio of freighter aircraft in five years.

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The JV will invest in passenger aircraft to be converted into highly efficient freighters to address the growing demand for freighter aircraft as e-commerce and air cargo volumes expand across the globe.

Shares of ST Engineering closed at S$3.72 on Wednesday, up S$0.02 or 0.54 per cent, after the announcement.