A subsidiary of Singapore Technologies Engineering (ST Engineering) S63 has been awarded a contract by the Ministry of Defence (MINDEF) for the detailed design and construction of six Multi-Role Combat Vessels (MRCVs) for the Republic of Singapore Navy (RSN).
ST Engineering Marine will be responsible for the procurement and integration of the platform equipment and MINDEF-furnished equipment. It will also design and provide integrated logistics support engineering to support and maintain operational readiness during the lifespan of the MRCVs.
The MRCVs will be constructed at ST Engineering Marine’s premises in Singapore. The six vessels are expected to be delivered progressively from 2028 onwards.
The MRCV is designed to function as a mothership and can operate a range of manned and unmanned systems in a flexible, intuitive and integrated manner, reads a March 27 press release by ST Engineering.
“This contract affirms our capabilities to design and build large and complex naval vessels,” says Ng Sing Chan, president of marine business at ST Engineering. “The new MRCV will harness the ‘multiplier effect’ of digital technologies, to meet the RSN’s requirements for faster, more efficient operations. It also demonstrates our commitment to support MINDEF in the area of design, construction, operations and support.”
The contract is not expected to have any material impact on either the net tangible assets per share or the earnings per share of ST Engineering group of the current financial year.
See also: ST Engineering, SIA Engineering 'flying under investors' radars' at attractive entry points: DBS
In February, ST Engineering reported earnings of $255.0 million for the 2HFY2022 ended Dec 31, 2022, 7.1% lower than earnings of $274.4 million in the corresponding period the year before.
The group’s earnings for the FY2022 came up to $535.0 million, 6.2% lower y-o-y.
The lower earnings for the 2HFY2022 and FY2022 were due to the lower government support grants, energy inflation, transaction and integration costs from the acquisition of TransCore and the tax-exempt effect of the jobs support scheme (JSS), but were mitigated by cost savings and growth in the business.
Shares in ST Engineering closed 10 cents higher, or 2.83% up, at $3.63 on March 27.
