ST Engineering's Aerospace Arm Secures Contracts Worth S$450m in 4Q2018, totalling S$2.06bn for 2018

Singapore, 15 January 2019 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that its Aerospace arm secured new contracts worth about S$450m in the fourth quarter (4Q) of 2018 for services including maintenance and modification for wide-ranging aircraft parts from the airframe to components.

New contracts

A number of new contracts secured in 4Q2018 are for airframe heavy maintenance checks to service both commercial aircraft and private jets. These include a contract from a major North American airline to carry out heavy maintenance services to their A321s for the first time. In addition to airframe maintenance, the same North American airline also awarded a contract for an in-seat power supply, overhead bin and galley modification programme for their entire suite of 48 A320s.

ST Engineering continues to win multi-year contracts as it maintains the confidence of repeat customers with high-quality redeliveries. Multi-year contracts won in 4Q2018 include a five-year component maintenance-by-the-hour contract extension to support an Asian airline’s entire fleet of B737NG/MAX aircraft.

Redeliveries and capabilities development

The Aerospace sector redelivered a total of 213 aircraft for airframe heavy maintenance and modification work in 4Q2018. Additionally, a total of 11,212 components, 50 landing gears and 41 engines were processed, while 2,515 engine washes were conducted.

In China, the sector expanded its airframe maintenance portfolio when its Guangzhou facility obtained approval from the Civil Aviation Authority of Malaysia to carry out base maintenance for the A320neo 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.