ST Engineering's Aerospace Arm Secures Contracts Worth S$450m in 4Q2018, Totalling S$2.06bn for 2018
(Source: ST Engineering; issued Jan 15, 2019)
SINGAPORE --- Singapore Technologies Engineering Ltd (ST Engineering) today announced that its Aerospace arm secured new contracts worth about S$450m in the fourth quarter (4Q) of 2018 for services including maintenance and modification for wide-ranging aircraft parts from the airframe to components.
A number of new contracts secured in 4Q2018 are for airframe heavy maintenance checks to service both commercial aircraft and private jets. These include a contract from a major North American airline to carry out heavy maintenance services to their A321s for the first time. In addition to airframe maintenance, the same North American airline also awarded a contract for an in-seat power supply, overhead bin and galley modification programme for their entire suite of 48 A320s.
ST Engineering continues to win multi-year contracts as it maintains the confidence of repeat customers with high-quality redeliveries. Multi-year contracts won in 4Q2018 include a five-year component maintenance-by-the-hour contract extension to support an Asian airline’s entire fleet of B737NG/MAX aircraft.
Redeliveries and capabilities development
The Aerospace sector redelivered a total of 213 aircraft for airframe heavy maintenance and modification work in 4Q2018. Additionally, a total of 11,212 components, 50 landing gears and 41 engines were processed, while 2,515 engine washes were conducted.
In China, the sector expanded its airframe maintenance portfolio when its Guangzhou facility obtained approval from the Civil Aviation Authority of Malaysia to carry out base maintenance for the A320neo platform.
The above 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.
ST Engineering’s Marine Arm Secures S$560m New Contracts in 4Q2018
(Source: ST Engineering; issued Jan 14, 2019)
SINGAPORE --- ST Engineering announced today that its Marine arm has won S$560m worth of new contracts in the last quarter of 2018. The award of these contracts demonstrates the sector’s ability to deliver total marine and environmental engineering solutions at its facilities in Singapore and the US.
Fast Patrol Boats for the Singapore Police Coast Guard
The Ministry of Home Affairs has awarded ST Engineering a contract for the design, construction and maintenance of Fast Patrol Boats for the Singapore Police Coast Guard. Construction of the boats is expected to commence in mid-2019.
145 MW Floating Power Barge
ST Engineering and Siemens have jointly received an order for a SCC-800 2X1C SeaFloat barge-mounted power plant from Seaboard Corporation subsidiary Transcontinental Capital Corporation (Bermuda) Ltd., an Independent Power Producer with operation in Dominican Republic.
Under a turnkey plug and play concept, ST Engineering will be responsible for the engineering design, procurement and construction of the floating power barge, the balance of plant and the installation of the floating power plant. Siemens will provide a Siemens’ combined cycle power plant with a capacity of 145 megawatts (MW) and deliver its innovative hybrid SIESTART solution, combining a flexible (gas turbine) combined cycle power plant with a battery energy storage system.
This ‘SeaFloat’ concept, when completed in ST Engineering’s shipyard in Singapore, will provide the customer with a quality proven power plant at a lower cost in comparison to a similar land-based power plant. Upon completion of the construction in 3Q 2020, the barge will be transported to its final destination where hot commissioning of the power generation facility will be undertaken before final delivery to the customer.
Singapore’s Fifth Desalination Plant
Following the award of the engineering, procurement and construction contract for Jurong Island Desalination Plant in April 2018, ST Engineering was awarded the Mechanical & Electrical (M&E) contract for the mechanical, electrical, instrumentation and control works for the plant consisting of the Air Flotation system, Ultrafiltration system, and Reverse Osmosis system. This is further testament to the Group’s deep engineering capabilities in delivering large-scale projects.
New Contracts in the US
In the US, the Group has been awarded a contract by a foreign government for the detailed design and construction of two firm Logistics Support Vessels (LSVs). The vessels will be repeat designs of an earlier LSV with enhancements to include range and cargo capacity changes to suit new requirements, an increase in speed without modifying the hull form or changing the main engine size and type, as well as upgrades to the crew complement.
In addition, the Group’s US shipyard received a contract from the Naval Sea Systems Command (NAVSEA) for the functional design engineering, procurement of long-lead time material, and limited advanced production to support the new T-AGS 67 Oceanographic Survey Ship. Completion of this contract is expected by May 2019.
These contracts 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.
ST Engineering is a global technology, defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors. The Group employs about 22,000 people across offices in Asia, the Americas, Europe and the Middle East, serving customers in the defence, government and commercial segments in more than 100 countries. Headquartered in Singapore, ST Engineering reported revenue of S$6.62b in FY2017 and it ranks among the largest companies listed on the Singapore Exchange.