ST Engineering sees 19% rise in 9-month revenue to $6.5 billion

SINGAPORE – Singapore Technologies Engineering (ST Engineering) on Monday posted a 19 per cent rise in revenue for the nine months ended Sept 30, with higher contributions across all business segments.

It also declared an interim dividend of four cents for the third quarter. The expected payment date is Dec 20, with books closure on Dec 7, the defence and engineering group said. ST Engineering recorded revenue of $6.5 billion for the nine-month period, compared with $5.5 billion in the corresponding period a year ago.

Its urban solutions and satellite communications segment saw the highest gain at 54 per cent, raking in $1.2 billion compared with $787 million the year before. This was mainly due to contributions from the group’s TransCore acquisition and higher revenue recognition from its Smart City project. The group won new contracts worth $2 billion in the third quarter for this segment, totalling $2.7 billion for the nine-month period.

Its defence and public security segment continued to be the highest revenue contributor with $3.1 billion recorded, up 6 per cent from the $3 billion posted previously. There was $1.8 billion in new contract wins, notably in the Middle East, bringing the nine-month total to $4.5 billion.

The commercial aerospace segment brought in $2.2 billion in revenue, up 25 per cent from the $1.7 billion recorded in the year-ago period, as the aviation sector recovers. The segment had new contract wins of $1 billion in the third quarter, totalling $3 billion for the nine-month period.

The group’s total order book stood at $25 billion as at Sept 30, with $2.5 billion to be delivered in the fourth quarter of 2022. ST Engineering expects its new fourth-quarter contracts to more than offset the $1.9 billion United States marine order book divested.

ST Engineering closed two cents or 0.6 per cent higher at $3.49 on Friday, and closed unchanged on Monday.

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