ST Engineering posts 19% rise in 9M revenue to S$6.5b; reveals plans to reduce capital

SINGAPORE Technologies Engineering ( ST Engineering ) strives to cut down on capital employed to help it lower its borrowing of S$6.8 billion, including a plan to reduce several hundreds of million of dollars in capital employed in the coming months.

Chief financial officer Cedric Foo stated in a briefing on Monday (Nov 28) after the engineering heavyweight released its third-quarter market update: “And if you reduce your capital employed to run this particular size of business, you can also use it to reduce borrowing and therefore the impact on floating interest rates.”

ST Engineering posted a 19 per cent rise in revenue to S$6.5 billion for the nine months ended Sep 30, compared with S$5.5 billion in the corresponding period a year earlier. It also declared an interim dividend of S$0.04 a share for the third quarter. The expected payment date is Dec 20, with books closure on Dec 7, the defence and engineering group said.