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ST Engineering posts 12% fall in Q2 profit on weaker land systems

SINGAPORE Technologies Engineering Ltd (ST Engineering) reported a 12 per cent decline in net profit for the second quarter ended June 30 to S$111.5 million.

This came on the back of losses incurred in the marine division and a lack of divestment gain on a subsidiary in the land systems division.

Revenue grew 8 per cent to S$1.76 billion, the integrated defence and engineering group said on Friday.

ST Engineering said its diverse business portfolio mitigated overall impact of weak marine sector. Commercial sales and defence sales constituted 64 per cent and 36 per cent of second-quarter group revenue respectively.

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Its order book stood at S$13.5 billion at end-June, of which about S$2.1 billion is expected to be delivered in the remaining months of this year. In the second quarter, the group announced S$1.14 billion worth of new contracts.

ST Engineering president and CEO Vincent Chong said the group remains focused on strengthening its core defence and commercial businesses, while "pursuing opportunities in new growth areas".

The Board has agreed to maintain the interim dividend at five Singapore cents per ordinary share, similar to the interim dividend payouts in the last two years. Shareholders will receive the payment on Aug 29.