ST Engineering Secures $560m New Contracts in 4Q2018

ST Engineering has announced that its Marine arm has won $560m worth of new contracts in the last quarter of 2018. 

Fast Patrol Boats For the Singapore Police Coast Guard
The Ministry of Home Affairs has awarded ST Engineering a contract for the design, construction and maintenance of Fast Patrol Boats for the Singapore Police Coast Guard. Construction of the boats is expected to commence in mid-2019.

145 MW Floating Power Barge
ST Engineering and Siemens have jointly received an order for a SCC-800 2X1C SeaFloat barge-mounted power plant from Seaboard Corporation subsidiary Transcontinental Capital Corporation (Bermuda) Ltd., an Independent Power Producer with operation in Dominican Republic.

Under a turnkey plug and play concept, ST Engineering will be responsible for the engineering design, procurement and construction of the floating power barge, the balance of plant and the installation of the floating power plant. Siemens will provide a Siemens’ combined cycle power plant with a capacity of 145 megawatts (MW) and deliver its innovative hybrid SIESTART solution, combining a flexible (gas turbine) combined cycle power plant with a battery energy storage system. This ‘SeaFloat’ concept, when completed in ST Engineering’s shipyard in Singapore, will provide the customer with a quality proven power plant at a lower cost in comparison to a similar land-based power plant. Upon completion of the construction in 3Q 2020, the barge will be transported to its final destination where hot commissioning of the power generation facility will be undertaken before final delivery to the customer.

Singapore’s Fifth Desalination Plant
Following the award of the engineering, procurement and construction contract for Jurong Island Desalination Plant in April 2018, ST Engineering was awarded the Mechanical & Electrical (M&E) contract for the mechanical, electrical, instrumentation and control works for the plant consisting of the Air Flotation system, Ultrafiltration system, and Reverse Osmosis system.

New Contracts in the US
In the US, the Group has been awarded a contract by a foreign government for the detailed design and construction of two firm Logistics Support Vessels (LSVs). The vessels will be repeat designs of an earlier LSV with enhancements to include range and cargo capacity changes to suit new requirements, an increase in speed without modifying the hull form or changing the main engine size and type, as well as upgrades to the crew complement.

In addition, the group’s US shipyard received a contract from the Naval Sea Systems Command (NAVSEA) for the functional design engineering, procurement of long-lead time material, and limited advanced production to support the new T-AGS 67 Oceanographic Survey Ship. Completion of this contract is expected by May 2019.

These contracts 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.