CFA Society Singapore
SINGAPORE (Oct 15): ST Engineering’s aerospace business sector has secured new contracts totalling $590 million in value in 3Q18 for services ranging from airframe, engine and component maintenance, to engine wash.
A number of the contracts are multi-year agreements, including a four-year ATR 72 landing gear overhaul agreement from an Asian airline; a five-year contract extension to maintain the PW4000 thrust reversers and inlets of an European operator’s A300-600 fleet; and heavy maintenance agreements from American freight operators.
In a Monday filing, ST Engineering says its aerospace sector redelivered a total of 208 aircraft units for airframe heavy maintenance and modification work in 3Q.
A total of 11,992 components, 35 landing gears and 45 engines were processed, while 2,644 engine washes were conducted.
Meanwhile, the group’s aerospace sector continued to expand its aftermarket services in nacelle systems by successfully setting up MRO capabilities for A320’s V2500 and CFM56-5B nacelles. It is currently developing aftermarket capabilities in new-generation flight control and nacelles systems used in aircraft platforms.
In China, the group expanded its airframe maintenance portfolio as its aerospace sector’s Guangzhou facility obtained approval from the Civil Aviation Administration of China (CAAC) to carry out base maintenance for the Boeing 767 platform.
The group does not expect these developments, including its new contract wins, to have a material impact on its consolidated NTA and EPS for the current financial year.
Shares in ST Engineering closed 3 cents lower at $3.40 on Monday.