SINGAPORE Technologies Engineering’s (ST Engineering) profit for the first half ended Jun 30, 2024, grew 19.9 per cent year on year to S$336.5 million from S$280.6 million previously.
Earnings per share for the period stood at S$0.108, up from S$0.0901 in the same period the year before. The group’s board has approved a second interim dividend of S$0.04 per share to be paid out on Sep 5.
ST Engineering’s higher profitability for H1 came on the back of a 13.5 per cent surge in revenue to S$5.5 billion, versus S$4.9 billion in H1 FY2023.
Group earnings before interest and taxes (Ebit) was S$522.9 million, up 17.7 per cent from S$444.2 million in the prior year.
On Wednesday (Aug 14), the group said its top line growth had been driven by higher contributions from all three business segments.
This was particularly so for commercial aerospace, which experienced increased revenue contributions from the aerospace maintenance, repair and overhaul operations, as well as aerostructures and systems sub-segments.
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A 20 per cent year-on-year increase in overall segment revenue drove Ebit growth up 7 per cent to S$190 million.
In the defence and public security segment, revenue grew 12 per cent to S$2.4 billion on the back of higher contributions to the digital systems and cyber, as well as marine sub-segments. The segment’s Ebit increased 8 per cent on the year to S$324 million.
Urban solutions and satcom revenue climbed 3 per cent to S$918 million, attributed to revenue growth from the urban solutions sub-segment including TransCore. This brought the segment back into black with a S$9 million Ebit compared to a loss of S$34 million the prior year.
As at end-June 2024 the group had an order book of S$27.9 billion, out of which S$4.9 billion is expected to be delivered in the remaining months of 2024.
Group president and chief executive Vincent Chong said: “Despite continuing challenges in the operating environment, we see opportunities in aerospace, smart city, defence and public security industry domains. Given these opportunities and supported by a robust order book, we remain confident in achieving long-term sustainable growth.”
Shares of ST Engineering ended S$0.03 or 0.7 per cent higher at S$4.28 on Tuesday.
