Singapore Technologies Engineering (ST Engineering) has reported earnings of $274.4 million for the 2HFY2021 ended December, 3.8% higher than earnings of $264.4 million in the same period the year before.

2HFY2021 revenue grew 12.7% y-o-y to $4.04 billion due to broad-based revenue growth in the group’s segments.

Revenue for ST Engineering’s commercial aerospace segment rose 25% y-o-y to $1.33 billion on the back of continued business recovery.

Revenue for urban solutions & satcom rose 5% y-o-y to $663 million for the half-year period. The higher revenue was attributable to higher Smart City project deliveries, which were partly affected by the semiconductor chip shortage.

Defence & public security revenue in the 2HFY2021 rose 8% y-o-y to $2.05 billion with higher revenue across its sub-segments.

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Group EBIT rose 12.9% y-o-y to $318.5 million for the 2HFY2021 thanks to a 12.8 times surge to $79.3 million in the commercial aerospace segment, from $6.2 million in the year before. This was slightly offset by a 71% y-o-y drop in urban solutions & satcom’s EBIT to $15.0 million. Defence & public security stood 0.3% y-o-y up at $224.3 million in its EBIT for the 2HFY2021.

2HFY2021 profit before tax (PBT) increased 20.1% y-o-y to $297.8 million.

The higher growth in PBT compared to the group’s net profit was due to the unfavourable tax effect of a significant reduction of non-taxable government support during the period.

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In the FY2021, the group reported earnings of $570.5 million, 9.3% higher than earnings of $521.8 million.

FY2021 revenue grew 7.5% y-o-y to $7.69 billion thanks to broad-based growth across all segments.

Commercial aerospace revenue grew 6% y-o-y to $2.46 billion, which saw strong growth in the 2QFY2021 to 4QFY2021. This was contributed by revenue growth from aerostructures & systems, while aerospace maintenance, repair and operations (MRO) continued to be impacted by the subdued aviation sector.

Revenue for urban solutions & satcom rose 8% y-o-y to $1.19 billion. This was contributed by higher Smart City project deliveries, partially offset by the impact of global semiconductor chip shortages on Smart City project and Satcom product deliveries.

Defence & public security revenue grew 8% y-o-y to $4.04 billion with contribution from all its sub-segments.

Profit from operations (PFO) rose 13.3% y-o-y to $645.9 million.

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EBIT increased 13% y-o-y to $673.6 million due to higher EBIT from the commercial aerospace and offset by lower EBIT from urban solutions & satcom and defence & public security.

Profit before tax increased 19.3% y-o-y to $637.6 million.

In 4QFY2021, the group secured new contracts of about $3.2 billion, bringing the total new contract value for 2021 to $11.7 billion.

As at end-December, the group has an orderbook of $19.3 billion, of which $6.6 billion is expected to be delivered in 2022.

The board has proposed a final dividend of 10 cents per share, bringing the total dividend for the FY2021 to 15 cents per share.

On Feb 24, the board approved a dividend policy to declare dividends every quarter instead of twice a year previously.

For FY2022, the plan is for dividends to be paid four times a year, at 4.0 cents per share each time, bringing FY2022’s total dividends to 16.0 cents per share.

The dividends for FY2022 are currently scheduled to be paid in June 2022, September 2022, December 2022 and May 2023.

“In 2021, we delivered a good set of results as all business segments registered growth despite persisting pandemic challenges. This reflects the underlying strengths of our businesses and our people. The proposed TransCore acquisition demonstrates our readiness to seize growth opportunities to emerge stronger post pandemic. We can look to the future with confidence as our order book of $19.3 billion is very robust,” says group president and CEO Vincent Chong.

“We expect the delivery of our strong order book, our various business initiatives and further business recovery to position us well for 2022 business performance. Moreover, our focus on the effective execution of our long-term strategy and our commitment to invest across the business cycles will put us in good stead to achieve our 2026 targets as communicated on our Investor Day,” he adds.

Shares in ST Engineering closed 7 cents lower or 1.82% down at $3.78 on Feb 24.

ST Engineering posts 3.8% higher earnings of $274.4 mil for 2HFY2021; proposes final dividend of 10 cents a share

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