ST Engineering Q2 earnings up 18% to $138.2m

President and CEO of ST Engineering Vincent Chong said the MRAS acquisition has been accretive to earnings and its integration into the group is progressing well.
President and CEO of ST Engineering Vincent Chong said the MRAS acquisition has been accretive to earnings and its integration into the group is progressing well.PHOTO: ST ENGINEERING

SINGAPORE - Mainboard-listed Singapore Technologies Engineering (ST Engineering) on Wednesday (Aug 14) posted an 18 per cent rise in second-quarter net profit to $138.2 million for the three months ended June 30, up from $117.5 million a year ago, on the back of higher earnings from its marine sector.

Earnings per share for the quarter came in at 4.43 cents, versus 3.77 cents for the preceding year.

Revenue for the quarter also rose 8 per cent to $1.78 billion, thanks to its Aerospace sector, with newly acquired MRAS as the main contributor.

The group's board has approved an interim dividend of five Singapore cents per ordinary share, unchanged from last year, and the dividend payment will be made on Sept 3, 2019, ST Engineering said.

For the six months ended June 30, net profit rose 14 per cent to $269.3 million from $235.2 million a year ago. Revenue also increased 6 per cent $3.51 billion, up from $3.30 billion for the same period last year.

Vincent Chong, president and CEO of ST Engineering, said: "MRAS acquisition was completed in April. It has been accretive to our earnings and its integration into the group is progressing well. Our underlying business remains strong and our group's record high order book of $15.6 billion gives us revenue visibility over the next few years."

ST Engineering shares closed at $4.27 on Tuesday, up 1.2 per cent, or five cents.