ST Engineering secured $1.5b-worth of contracts in Q2

Its aerospace and electronics sector accounted for $809m and $702m, respectively.

Engineering firm Singapore Technologies Engineering (ST Engineering), revealed that its aerospace and electronics sectors have secured new contracts with a combined value of about $1.5b for Q2.

Also read: ST Engineering nabbed contracts worth $2.1b in Q1 2019

This is in addition to the $1b contract clinched last April for the design and construction of the first Polar Security Cutter for the US Navy. The agreement includes options for two more vessels, which when exercised would bring the total contract value for the three vessels to about $2.6b. 

The aerospace sector accounted for $809m of these contracts, involving services such as airframe and engine MRO services and support. The deals include multi-year agreements to provide heavy maintenance services to their entire fleet of Boeing 717s, AirAsiaX Berhad and Beibu Gulf Airlines, as well as a number of agreements for engine maintenance.

Meanwhile, the group’s electronics sector received new orders globally worth $702m for smart mobility, satellite communications, Internet of Things (IoT), cybersecurity, public safety and security, and defence.

It mentioned that its ‘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. The business also delivered a maintenance management system to China’s Foshan Metro Line 2 and Gaoming District Tram.

In Singapore, contracts were secured for the installation of smart indoor lighting control solutions in residential estates and carparks. The sector also inked a deal with PSA to develop an advanced command centre that enables digitalisation, automation and intelligent decision-making for Tuas port operations.

Furthermore, its training and simulation business received a contract worth $1.3b (US$95m) from the US Army to develop and deliver a unified simulation platform for its synthetic training environment.

A report by OCBC Investment Research (OIR) last June revealed that amongst the group’s $14.1b-worth of contracts nabbed as at end-March, around $4.2b is expected to be delivered in 9M 2019.