ST Engineering's Aerospace arm adds about S$510m contract wins in 4Q2017, totalling S$2.8bn for 2017

January 17, 2018 Singapore

Singapore Technologies Engineering Ltd (ST Engineering) today announced that its aerospace arm, Singapore Technologies Aerospace Ltd (ST Aerospace) secured new contracts worth about S$510m in the fourth quarter (4Q) of 2017 for services ranging from airframe maintenance and landing gears repair to pilot training.

New contracts

The airframe maintenance contracts include multi-year agreements to provide A- and C-checks for Boeing aircraft including the 777 and 747, as well as support for other platforms including the MD-11 and A320. Other Maintenance, Repair & Overhaul (MRO) contracts clinched in 4Q2017 include agreements for ATR72-500 shipsets, landing gear repair for military planes, extension of engine wash services for existing customers and Boeing 787 component support over 15 years for Gulf Air, which was announced last November. In the non-MRO related business, contracts won during the quarter include a 3-year pilot training agreement from a new customer.

Redeliveries and capabilities development

The aerospace sector redelivered a total of 1,206 aircraft for airframe maintenance and modification work in 4Q2017. Additionally, a total of 11,852 components, 58 landing gears and 40 engines were processed, while 2,494 engine washes were conducted.

During the quarter, Elbe Flugzeugwerke, the joint venture between ST Aerospace and Airbus redelivered the first A330-300 Passenger-to-Freighter converted aircraft to launch customer, DHL Express after the successful completion of test flights in October and awarding of the Supplemental Type Certificate by the European Aviation Safety Agency in November.

For its aircraft seats business, ST Aerospace continues to build up its capabilities by meeting stringent performance standards when it achieved the European Technical Standards Order (ETSO) for lightweight economy class seat for the A320 platform.

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.