ST Engineering marine arm lands around S$431 million new contracts in 3Q18

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

ST Engineering said on Tuesday that its marine segment obtained around S$431 million of new contracts in the third quarter, including options for its shipbuilding business and ship and rig repair segments.

“These new contracts reinforced the positioning of the Group’s marine sector as a total solution provider for both naval and commercial ships,” it said in a filing to SGX after the market close on Tuesday.

ST Engineering’s U.S. shipyard obtained a contract from the Naval Sea Systems Command (NAVSEA), worth US$244 million, or around S$331 million, for the detailed design and construction of two firm and up to four optional auxiliary personnel lighter small APL class berthing barges, it said.

The two firm vessels are expected to be delivered in the second and third quarters of 2020, while the options for the four vessels could be exercised for delivery during the 2019 to 2022 fiscal years, it said.

The U.S. shipyard also obtained a contract from long-standing customer Bouchard Transportation for US$30 million, or around S$40 million, for a new build of one firm articulated tug barge (ATB) tug and an option for a second vessel to be exercised in the first quarter of next year, it said.

In addition, ST Engineering’s ship and repair business secured contracts valued at around S$35 million for both commercial and naval projects, it said.

Its U.S. repair business has cross-sold its repair and maintenance services to a larger pool of customers, it said.

“These contracts secured cover a wide-ranging scope – from repair of dredgers, offshore vessels, and oil & chemical tankers, to high engineering content conversion of an anchor handling tug supply vessel to carry methanol instead of cement,” it said.

It also obtained its first refit on a naval platform for a foreign navy with Indo-Pacific region operations, it said.

ST Engineering also said it chartered the Nova Star, a roll-on/roll-off passenger vessel, for a 24-month bareboat charter and it is currently in service between the Baltic Sea and the North Sea.

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