Aerospace and defence conglomerate Singapore Technologies Engineering (ST Engineering) saw weak results from its shipbuilding business, offset somewhat by strong results from its electronics sector and a stronger United States dollar.
Net profit for the full year dipped 0.5 per cent to $529 million, while revenue fell 3.1 per cent to $6.33 billion for the 12 months to Dec 31, from the same period a year earlier.
Lower revenue from the marine sector was mainly offset by higher revenue from the electronics and other sectors, said the firm yesterday. Turnover from the aerospace sector grew 1 per cent to $2.09 billion, thanks to more revenue in Singapore-dollar terms from a stronger US dollar, and more maintenance programmes in the engineering and materials services business.
This was partly offset by lower revenue from the aircraft maintenance and modification business.
Full-year revenue for the electronics sector rose 8 per cent to $1.7 billion, thanks to higher-value project completions from the software systems group, and greater sales of satellite communication products. The marine sector's turnover, however, fell 29 per cent to $958 million, mainly owing to lower revenue recognition from shipbuilding contracts from local and US operations.
AT A GLANCE
NET PROFIT: $529 million (-0.5%)
REVENUE: $6.33 billion (-3.1%)
FINAL DIVIDENDS A SHARE: 10 cents (-9.1%)
The firm has had a busy year, adding: "We made history with the successful launch of Singapore's first commercial earth observation satellite in December."
The group ended the year with a healthy order book of $11.7 billion, of which $3.8 billion is expected to be delivered this year.
Earnings per share for the year was 17.05 cents, slightly down from 17.06 cents a year ago.
Net asset value per share was 68.74 cents as at Dec 31, up from 68.38 cents a year ago.
ST Engineering proposed a final dividend of 10 cents per share.
The total dividend is 15 cents a share, unchanged from last year, as the firm gave a higher interim dividend of five cents a share, up from last year's four cents. The dividend yield is 4.68 per cent, using the average closing share price of the last trading day of last year and 2014.
ST Engineering said in a statement: "Barring unforeseen circumstances, the group expects revenue for 2016 to be higher, but profit before tax to be comparable to this year." Maybank Kim Eng noted that ST Engineering "should profit from the next upcycle", and maintained its buy call on the stock.
The stock closed four cents higher at $2.85 yesterday.