ST Engineering's marine arm secures $560 mil new contracts in 4Q18
SINGAPORE (Jan 14): ST Engineering says that its marine arm has secured $560 million worth of new contracts in 4Q18.
The group was awarded a contract by the Ministry of Home Affairs for the design, construction and maintenance of Fast Patrol Boats for the Singapore Police Coast Guard. Construction of the boats is expected to commence in mid-2019.
ST Engineering, along with Siemens, have jointly secured an order for a SCC-800 2X1C SeaFloat barge-mounted power plant from Seaboard Corporation subsidiary Transcontinental Capital Corporation, an independent power producer with operation in the Dominican Republic.
Under this contract, a turnkey plug and play concept, the group will be responsible for the engineering design, procurement and construction of the floating power barge, the balance of plant and the installation of the floating power plant.
Once completed at the group’s shipyard in Singapore, the SeaFloat concept will provide the customer with a quality proven power plant at a lower cost in comparison to a similar land-based power plant. Construction is expected to be completed in 3Q20.
ST Engineering also won the mechanical and electrical (M&E) contract for Singapore’s fifth desalination plant. Under this contract, the group will be responsible for mechanical, electrical, instrumentation and control works for the plant consisting of the Air Flotation system, Ultrafiltration system, and Reverse Osmosis system.
In addition, the group has been awarded a contract by a foreign government for the detailed design and construction of two firm Logistics Support Vessels (LSVs) in the US.
The vessels will be repeat designs of an earlier LSV with enhancements to include range and cargo capacity changes to suit new requirements, an increase in speed without modifying the hull form or changing the main engine size and type, as well as upgrades to the crew complement.
The group’s shipyard in US also received a contract from the Naval Sea Systems Command (NAVSEA) for the functional design engineering, procurement of long-lead time material, and limited advanced production to support the new T-AGS 67 Oceanographic Survey Ship. Completion of this contract is expected by May 2019.
The above contracts are not expected to have any material impact on the group’s consolidated net tangible assets per share and earnings for the current financial year.
Shares in ST Engineering closed 1 cent higher at $3.58 on Monday.
