ST Engineering today announced that the Group has won contracts totalling about S$110m in value. These include an Automatic Fare Collection System (AFCS) for the Bangkok Mass Transit System (BTS); supply of 40mm ammunition to the UK Ministry of Defence (UK MoD); and ship upgrading and modification contracts from both naval and commercial customers.
ST Electronics was awarded a contract by The Krungthep Thanakom Company Limited (KT), a Bangkok Metropolitan Administration Enterprise to supply an AFCS for the extension of the BTS Sukhumvit Line in Bangkok, Thailand. The AFCS for the Sukhumvit Line will be implemented from On Nut Station to Bearing Station (E10 to E14). The extension adds 5.25km to the route length of the existing BTS Sukhumvit Line and includes five new sta tions. The AFCS will be delivered by the second half of 2011 for commencement of revenue service.
ST Kinetics won a contract from the UK MoD for the supply of low velocity and high velocity 40mm ammunition that caters to the operation and training needs of the UK Army. Winning this competition has enabled continuation of supply to the UK MoD, a customer of ST Kinetics since 2002 and is a strong endorsement of the high standards and quality of ST Kinetics' 40mm products. Delivery will begin in the second quarter of 2011 and will be completed in the first quarter of 2012.
ST Marine scored its first contract with the Royal Australian Navy (RAN) to convert its 157.2m long combat logistics vessel, HMAS Success, to be double hulled to meet the International Maritime Organisation standards for environmental protection against oil spills. HMAS Success is designed to supply naval combat units with fuel, ammunition, food and stores whilst underway at sea. Capable of day and night Replenishment at Sea to ships alongside and concurrently by her embarked helicopter to other ships in company, HMAS Success weighs 18,000 tonnes when fully loaded. Commissioned in 1986, HMAS Success is the largest ship built in Australia for the RAN. Work is scheduled to commence before the end of this year when the tanker is deployed in the region and will be re-delivered by the first half of 2011.
The sector also secured two significant repair and conversion jobs from Saipem (Portugal) Comercio Maritimo (Saipem) and Coastline Group of Companies (Coastline) respectively. Saipem's 31,901 tonne (GRT) SEMAC 1, a semi submersible pipe lay vessel measuring 188.1m long, including truss, and 54.8m wide, will undergo upgrading and modification works including: stern winches upgrade, installation of new pipe tensioners, modification of Abandonment and Recovery winch, maintenance activities and Australisation of the vessel. As SEMAC 1 will be deployed in Aust ralia, the vessel needs to undergo Australisation to meet local regulatory requirements. Some of the major Australisation work include: removing existing accommodation (98 cabins with galley and offices) to rebuild 168 new cabins with galley and offices, building a new helideck and an extra accommodation block. The project has commenced and is expected to be completed by July 2011.
Coastline's Caballo Maya, a 143.5m long and 22m wide offshore diving support construction vessel will be undergoing fabrication and installation of sponsons, crane foundation and modification of the stern section. The sponsons fabrication will widen the vessel and help improve its stability. The vessel will be upgraded to install an 850 ton Huisman heavy lift crane. Fabrication of the sponsons and stern blocks has commenced. The vessel is expected to join Coastline's fleet of deep sea offshore support vessels by the first quarter of 2011.
These contracts are not expected to hav e any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
Related Research on ASDReports.com: