24-Oct-2019 Source: ST Engineering
Singapore Technologies Engineering Ltd (ST Engineering) announced that its Aerospace and Electronics sectors have secured new contracts with a combined value of about $1.8b for the third quarter (3Q) of 2019.
Contracts by the Aerospace sector worth about $1.0b
The Aerospace sector secured various contracts amounting to $1.0b across its spectrum of aviation manufacturing and services businesses.
These include contracts ranging from nacelle component and floor panel manufacturing to aircraft airframe and helicopter MRO support services. Among the new multi-year MRO contracts is a 10-year agreement to work with Airbus Helicopters starting in early 2021 to support the scheduled maintenance, inspection and on-demand repairs of a substantial part of the German Armed Forces’ NH90 fleet. Other contracts include a five-year extension agreement for airframe maintenance from an A380 operator, and a seven-year agreement to provide component Maintenance-By-the-Hour support to an operator’s fleet of Boeing 737NGs.
Contracts by the Electronics sector worth about $833m
The Electronics sector secured new orders worth $833m for satellite communications (satcom), mobility, public safety and security, Internet of Things (IoT), training and simulation, cybersecurity and defence.
In satcom, key contracts include the enhancement of communications for first response teams, and to ensure business continuity for healthcare and banking in rural U.S.. Smart mobility contracts secured include Passenger Information Systems for China’s Wuhan Metro Line 5, Nanjing Line 7, Nanchang Line 3; a communications system for the Philippines’s Manila Light Rail Transit System Line 2 Extension; Platform Screen Doors for Saudi Arabia’s Riyadh Metro Line 4; and Automatic Fare Collection systems in Singapore. The sector maintained its growth momentum in the IoT business, with contracts for deployment of smart water meters and smart street lighting in various global cities.
Its public safety and security business was appointed to supply a public safety agency in Asia with a next-generation emergency response management system and a 3D Air Traffic Tower Simulator System for a Southeast Asian aviation provider.
Contracts were clinched for the delivery of cybersecurity products and solutions to Vietnam’s enterprises and critical information infrastructure (CII), and Singapore’s aviation and homeland security customers. Other contracts include cybersecurity training for insurance and healthcare sectors. New defence contracts were also won for training and simulation, engineering and software services.
The sector also bagged a contract to develop an enterprise data analytics platform that delivers AI-embedded predictive insights for a utility company.
In addition to these contracts, the Group has other contract wins by its other business sectors not disclosed in this announcement due to customer confidentiality.
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.
All figures are denominated in Singapore dollars unless indicated otherwise.