ST Engineering lands S$1.5 billion in new contracts in 2Q19

ST Engineering display at CommunicAsia conference in Singapore in 2019.ST Engineering display at CommunicAsia conference in Singapore in 2019.

ST Engineering’s aerospace and electronics sectors obtained new contracts valued at around S$1.5 billion in the second quarter, the technology, defense and engineering group said in a filing to SGX Thursday.

That was in addition to a S$1 billion contract to design and build the U.S. Navy’s first polar security cutter, the filing said, adding the contract included the option for two more vessels, which if exercised, would raise the contract value to around S$2.6 billion.

The aerospace sector obtained new contracts worth around S$809 million in the quarter, with deals across the airframe, engine MRO services and support segments, the filing said.

“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,” ST Engineering said.

It added that also won a contract for its latest smart drone system, DroNet, for security and surveillance missions.

The electronics sector obtained new orders of around S$702 million for smart mobility, satellite communications, Internet of Things, cybersecurity, public safety and security, and defense, the filing said.

The smart mobility business obtained a contract from Taiwan’s Taoyuan MRT Green Line for rail electronics services, including train-borne communications, platform screen doors, automatic fare collection and data acquisition systems, ST Engineering said.

During the quarter, the business also delivered a maintenance management system to China’s Foshan Metro Line 2 and Gaoming District Tram, the filing said.

Within Singapore, contracts were obtained for installing smart indoor lighting control services for energy savings and efficiency in residential estates and carparks, ST Engineering said. It also said it obtained a contract from PSA to develop a command center to digitize and automate the Tuas port operations.

ST Engineering added that the training and simulation business in the U.S. obtained a US$95 million contract from the U.S. Army for a simulation platform for the synthetic training environment.

Other business sectors also had contract wins which couldn’t be disclosed due to customer confidentiality, ST Engineering said.

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