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ST Engineering Q3 profit rises 3.4% to S$139.1m

MAINBOARD-LISTED Singapore Technologies Engineering (ST Engineering) posted a 3.4 per cent rise in net profit to S$139.1 million for its third quarter ended Sept 30, from S$134.6 million a year ago.

This was on the back of higher revenue for all sectors, and rises in net profits for aerospace and others. (see amendment note 

If not for the arbitration outcome for the Hornbeck Offshore Services claim, net profit would have been 12 per cent higher year-on-year at S$150.3 million, the integrated engineering group said in a regulatory filing on Monday.

Earnings per share rose to 4.46 Singapore cents for the quarter, from 4.32 cents a year ago.

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Revenue for Q3 rose 27.2 per cent to S$2.07 billion, from S$1.63 billion a year ago, with commercial sales contributing 75 per cent or S$1.6 billion of revenue, and defence sales accounting for 25 per cent or S$500 million.

No dividend was declared for the quarter, unchanged from a year ago.

ST Engineering chief executive Vincent Chong said the group’s core business "remains strong" and its robust order book of S$15.9 billion continues to provide revenue visibility for the next few years.

"Amidst the trade tensions and geopolitical uncertainties which continue to weigh on the global economy, we continue to pursue growth areas, build capabilities, and integrate MRAS, Newtec and Glowlink into the group," he added.

Shares of ST Engineering closed at S$4.12 on Friday, down one Singapore cent or 0.2 per cent, before the results were announced.

Amendment note: A previous version of this article incorrectly reported the reason for the group's net profit being due to higher earnings for its aerospace, electronics and marine sectors, when it is in fact higher revenue for all sectors, and rises in net profits for aerospace and others. The article has been amended to reflect this change.