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ST Engineering's aerospace arm secures S$450m worth of contracts in Q4 2018
ST Engineering announced after trading hours on Tuesday that its aerospace arm secured new contracts worth S$450 million in the fourth quarter of 2018 for services including maintenance and modification for wide-ranging aircraft parts from the airframe to components.
This brings the total value of the contracts to S$2.06 billion for 2018.
A number of new contracts secured in Q4 2018 are for airframe heavy maintenance checks to service both commercial aircraft and private jets.
These include a contract from a major North American airline to carry out heavy maintenance services to their A321s for the first time. In addition to airframe maintenance, the same North American airline also awarded a contract for an in-seat power supply, overhead bin and galley modification programme for their entire suite of 48 A320s.
Multi-year contracts won in Q4 2018 include a five-year component maintenance-by-the-hour contract extension to support an Asian airline’s entire fleet of B737NG/MAX aircraft.
The aerospace sector redelivered a total of 213 aircraft for airframe heavy maintenance and modification work in Q4 2018. On top of that, a total of 11,212 components, 50 landing gears and 41 engines were processed, while 2,515 engine washes were conducted.
In China, the sector expanded its airframe maintenance portfolio when its Guangzhou facility obtained approval from the Civil Aviation Authority of Malaysia to carry out base maintenance for the A320neo platform.
These developments are 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.