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ST Engineering’s 2HFY2023 earnings up 19.9% y-o-y to $305.9 mil; full year revenue exceeds $10 bil

ST Engineering ended 2023 with an order book of $27.4 billion.

Singapore Technologies Engineering (ST Engineering) has posted earnings of $305.9 million for its 2HFY2023 ended December, up 19.9% y-o-y on strong business growth, higher productivity and cost savings.

Revenue was up 10% y-o-y to $5.2 billion, largely due to the growth of its commercial aerospace segment.

Cost of sales in 2HFY2023 widened by 8.4% to $4.25 billion, while gross profit grew 16.8% y-o-y to $992.34 million. Ebit increased 34% to $470 million.

For the full year, the company recorded earnings of $586.5 million, a 9.6% increase y-o-y.

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Revenue for FY2023 was up 12% y-o-y to $10.1 billion. Cost of sales for FY2023 grew 10.8% to $8.13 billion, while gross profit grew 16.1% to $1.97 billion. Ebit improved 24% y-o-y to $915 million.

In 4QFY2023, ST Engineering secured new contracts of about $3.1 billion. This brings the total new contract value for 2023 to $14.8 billion compared to $13.1 billion in 2022.

With these new contract wins and after adjustments of revenue delivery, ST Engineering ended 2023 with an order book of $27.4 billion. The company expects to deliver about $7.9 billion from the order book in 2024.

The board has proposed a final dividend of 4 cents per ordinary share. Together with the three quarterly interim dividends of 4 cents per ordinary share, the total dividend for FY2023 will be 16 cents per ordinary share.

ST Engineering group president and CEO Vincent Chong says the company’s performance in FY2023 was underpinned by the strength of its commercial aerospace and defence and public security segments, as well as a high-graded portfolio.

“Our investment in TransCore became accretive in FY2023, ahead of plan. The strong set of results was also supported by productivity and cost saving measures and investments made during the Covid -19 downturn. We remain focused on executing our robust order book of $27.4 billion, while delivering sustainable growth and creating value for our stakeholders,” he adds.

Shares in ST Engineering closed at an unchanged $3.98 on Feb 28.

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