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HOCK LOCK SIEW

ST Engineering’s US marine venture shows a rich order book is not always profitable

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Tay Peck Gek

Tay Peck Gek

Published Thu, Nov 10, 2022 · 05:50 AM
    • ST Engineering's proposed divestment of its US marine business resulted from its ongoing portfolio review and rationalisation to focus on strategic ventures and those that provide higher yields.
    • ST Engineering's proposed divestment of its US marine business resulted from its ongoing portfolio review and rationalisation to focus on strategic ventures and those that provide higher yields. PHOTO: BT FILE

    SINGAPORE Technologies Engineering (ST Engineering) has proposed divesting two loss-making marine subsidiaries in the United States, a move that has attracted nods from some analysts.

    ST Engineering Halter Marine and Offshore and VT Halter Marine will be sold to the United States’ largest privately owned and operated shipbuilder Bollinger Shipyards Lockport for US$15 million.

    The divestment proposal was made after a “thorough review” by ST Engineering, the Singapore mainboard-listed heavyweight said in a regulatory filing on Monday (Nov 7). The business units had incurred a combined pre-tax net loss of US$256 million in the past five years, with an annual pre-tax net loss ranging from US$40 million to US$60 million.

    Hock Lock SiewST EngineeringOffshore & MarineM&A

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