ST Engineering's marine sector wins S$179m shipbuilding and repair contracts
Singapore Technologies Engineering Ltd (ST Engineering) announced today that its marine sector has won shipbuilding and repair contracts worth about S$179m. These wins include a contract to build two additional Offshore Support Vessels (OSVs) as well as a series of repair and upgrading projects, STE press release said.
On shipbuilding, Hornbeck Offshore Services, LLC (Hornbeck) has exercised the options for two additional OSVs valued at about S$111m (US$89m), to be built by the marine sector’s US shipyard, VT Halter Marine. On 18 November 2011, VT Halter Marine announced the contract to construct eight 97.2m long OSVs worth about S$441m (US$353m) for Hornbeck, with options for up to 24 additional identical vessels. These two new vessels are expected to be delivered in the fourth quarter of 2014 and first quarter of 2015.
Based on VT Halter Marine’s Super 320 design developed for Hornbeck, the DP2 OSVs are designed to have approximately 20,800 bbl of liquid mud carrying capability, 1,136sqm of deck area and a fire-fighting class notation. All the OSVs will be constructed in VT Halter Marine’s yards at Moss Point Marine and Halter Moss Point in Mississippi.
On ship repairs and upgrading, ST Marine has secured a series of contracts not involving Hornbeck in the last two months worth about S$68m, on track with its focus to support the burgeoning oil and gas exploration activities. These include repairs and upgrades to various types of OSVs such as drillship, dredgers as well as a rig. The last of these projects are expected to be completed by the first quarter of 2013.
“We shall continue to ride on the demand for offshore support vessels and pursue this segment with our track record as a shipbuilder and repairer of choice for such vessels.” ~ NG Sing Chan, President, ST Marine
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.
ST Marine (Singapore Technologies Marine Ltd), the marine arm of ST Engineering, provides turnkey building, repair and conversion services for a wide spectrum of naval and commercial vessels. In shipbuilding, it has the proven capabilities to provide turnkey solutions from concept definition to detailed design, construction, on-board system installation and integration, testing, commissioning to through-life support. It has also established a track record in providing high engineering content shiprepair and ship conversion services for a worldwide clientele. ST Marine also provides a suite of sustainable environmental engineering solutions via its environmental engineering subsidiaries led by STSE Engineering Services Pte Ltd (STSE).
ST Engineering (Singapore Technologies Engineering Ltd) is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of $5.99b in FY2011 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, FTSE ASEAN 40 Index, MSCI Singapore and other indices. ST Engineering has more than 22,000 employees worldwide, and over 100 subsidiaries and associated companies in 23 countries and 41 cities.
