ST Electronics bags $206.8m contracts in 2Q13

Mass transit systems a key driver.

Singapore Technologies Engineering Ltd (ST Engineering) announced that its electronics arm, Singapore Technologies Electronics Limited (ST Electronics) has secured about S$206.8m worth of contracts for rail electronics, satellite communications (satcoms) and communications projects in the second quarter of 2013 (2Q2013).

ST Electronics has been awarded a number of rail electronics contracts worth some S$24.8m. Works on the projects have started and are expected to be completed by end 2016. These include three contracts worth about S$18m awarded by the Land Transport Authority for a communications network for the Mass Rapid Transit system, the implementation of a Communications System for Sengkang-Punggol Light Rapid Transit, and additional and alteration works on communications, control and station Travel Information Systems for the Circle Line's MacPherson Station.

On the satcom and communications front, ST Electronics secured contracts worth about S$182m for the supply of satcoms solutions and communications systems projects to local and international customers. These included network infrastructure, block up converters and amplifiers, as well as satellite hubs and remote terminals to government, enterprises, oil and gas and maritime users.

"The second quarter saw ST Electronics strengthening our position in the areas of rail electronics, satcoms and communications systems. We see opportunities in mass transit systems as cities become more densely populated, thereby exacerbating the need for efficient transportation infrastructures. ST Electronics is well-positioned, with our full suite of urban transit solutions, to address these markets," said Lee Fook Sun, President, ST Electronics.

"The proliferation of mobile devices and the need to be connected has driven the demand for broadband services in both urban and rural areas. Employing small cell technology, our satcoms solutions can deliver broadband data and carrier-class voice quality to remote populations and areas that lack network infrastructure. We have also launched a new generation of products that deliver best-in-class throughput performances that are compatible with the new generation of high throughput satellites," he added.

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.