SINGAPORE (Apr 20): Singapore Technologies Engineering (ST Engineering) has announced new contracts worth about $1.6 billion won by its aerospace and electronics sectors in 1Q2020.
The group’s aerospace sector secured about $838 million worth of contracts across its spectrum of aviation manufacturing and maintenance, repair and overhaul (MRO) businesses.
The MRO contracts included A320 heavy maintenance contracts and CFM56-7B engine maintenance contracts from Chinese airlines, as well as a component Maintenance-By-the-Hour (MBHTM) contract from a Southeast Asian airline to provide comprehensive component maintenance services for its entire fleet of Boeing 737 and Bombardier Q400.
Meanwhile, the group’s electronics sector secured about $730 million worth of contracts for products and solutions in smart mobility, cybersecurity, data analytics as well as training and simulation.
This included wins by its smart mobility business in India, where the group clinched contracts to provide Platform Screen Doors for two underground stations in the Chennai Metro Rail Phase 1 Extension, and a contract to deliver a Passenger Information System for 31 trains in Mumbai Metro Line 3.
These contracts are over and above a defence contract that its land systems arm secured for the production and supply of the Hunter Armoured Fighting Vehicle from the Singapore Ministry of Defence.
ST Engineering says there are other contracts outside of these that it has secured but have not disclosed due to customer confidentiality reasons.
The group adds that it is discussing with its customers to adjust delivery schedules or address order cancellations amid the Covid-19 pandemic.
The contract wins and other 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 ending December.
Shares in ST Engineering closed 5 cents higher, or up 1.5%, at $3.41 on Monday.
