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

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.