Singapore Technologies Engineering (ST Engineering) has reported revenue of $2.0 billion for the 1QFY2022 ended March, 13% higher than the revenue of $1.8 billion in the same period the year before.
The higher revenue was led by revenue growth across the group’s three segments, commercial aerospace, urban solutions & satcom and defence & public security.
Within the commercial aerospace segment, revenue increased 22% y-o-y to $674 million due to the gradual opening of borders, strong demand for passenger to freighter (PTF) aircraft, healthy orders for nacelles and a gradual recovery in the demand for maintenance, repair and overhaul (MRO) works.
Its PTFs for its A320/A321 and A330 are booked through to 2025 and 2026 respectively.
The segment secured some $0.9 billion of new contracts in the 1QFY2022.
For the 1QFY2022, ST Engineering’s urban solutions & satcom revenue grew 12% y-o-y to $297 million due to the higher number of deliveries for the group’s smart city project.
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Product redesign, supply chain diversification and price adjustment within the segment mitigated the global chip shortage situation.
The segment clinched $0.2 billion of new contracts during the quarter.
Revenue for defence & public security grew 9% y-o-y to $1.06 billion thanks to strong growth from its digital systems & cyber business.
According to the group, the segment will continue to leverage on the trend in hybrid and secure cloud migration among enterprises and accelerated adoption of operational technology (OT) cybersecurity solutions driven by OT/IT convergence.
The segment clinched $1.3 billion of new contracts during the quarter.
As at March 31, ST Engineering’s order book remains robust at $21.3 billion with $5.8 billion expected to be delivered in the remaining months of 2022.
Shares in ST Engineering closed 1 cent lower or 0.25% down at $3.98 on May 12.
