ST Eng’s marine arm saw revenues drop by 68% in 4Q11

Blame it on the terminated Ropax ferry contract, says DBS.

All segments of ST Engineering recorded revenue growth in 4Q11 except marine which drop to SGD91 million from SGD286 million in 4Q10.

ST Engineering on March announced that its marine arm – ST Marine (STM) – has received a notice of termination from Louis Dreyfus Armateurs (LDA) regarding the shipbuilding contract for the Roll-on/Roll-off Passenger ferry (Ropax). LDA is alleging that there is a delay in the delivery of the S$179m vessel, as well as a deficiency in the deadweight capacity.

On a positive note, DBS analyst Suvro Sarkar said that STE reported better-than-expected results in 4Q11, driven by higher revenues and better margins in a stronger US$ environment.

4Q11 net profit was up 6% y-o-y to S$152m, driving FY11 net profit up 7% y-o-y to S$528m.

PBT was driven by better sales mix at Land Systems and Marine sectors. Aerospace PBT margin was strong at 14% in 4Q11. Group PBT was up 4% in FY11 but lower effective tax rate contributed to the higher net profit growth.

The Group ended the year with a record S$12.3bn orderbook, which according to DBS ensures steady revenue growth and earnings delivery, going forward.

Management outlined its growth strategy through acquisitions (e.g. Nera Tel), new facilities like the Xiamen engine center and the upcoming MRO facility at Guangzhou, new capabilities like VIP aircraft interior modification, and expansion of existing facilities like building more capacity at Seletar Aerospace Park in Singapore and adding a shiprepair business at VT Halter Marine’s yards in the US.

However, other than any big acquisitions, DBS believes that other growth plans are more medium term in nature.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia