SINGAPORE (July 25): Technology, defence and engineering conglomerate Singapore Technologies Engineering announced Thursday that its Aerospace and Electronics businesses have secured new contracts worth a total of $1.5 billion in 2Q19.
In addition to these new contracts, the group says it has other contract wins by its other business sectors that are not disclosed due to customer confidentiality.
The Aerospace sector received a number of contracts worth around $809 million.
These contracts include a multi-year agreement from a long-time customer to provide heavy maintenance services to their entire fleet of Boeing 717s, agreements from AirAsiaX Berhad and Beibu Gulf Airlines also for heavy maintenance, and a number of agreements for engine maintenance.
The Electronics sector received new orders globally worth $702 million for smart mobility, satellite communications, Internet of Things (IoT), cybersecurity, public safety and security, and defence.
A key new win by its smart mobility business was for the provision of rail electronics solutions including train-borne communications, Platform Screen Doors (PSD), Automatic Fare Collection (AFC) and Supervisory Control and Data Acquisition (SCADA) systems to Taiwan’s Taoyuan MRT Green Line.
In Singapore, the Electronics sector also received a contract from PSA to develop an advanced Command Centre that enables digitalisation, automation and intelligent decision-making for Tuas port operations.
In the US, its Training and Simulation business received a contract worth US$95 million ($130 million) from the US Army to develop and deliver a unified simulation platform for the army’s synthetic training environment that meet demands for next generation collective training.
The new contract wins are in addition to the $1 billion contract announced in April for the design and construction of the first Polar Security Cutter for the Department of the US Navy. The contract includes options for two more vessels, which, when exercised, would bring the total contract value for the three vessels to about $2.6 billion.
ST Engineering says that new contract wins are not expected to have any material impact on its consolidated net tangible assets per share and earnings per share for the current financial year.
Shares in ST Engineering closed flat at $4.29 on Thursday.
