ST Engineering’s Aerospace Arm Seals New Contracts Worth $310M In 4Q2014

Singapore, 13 January 2015 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that its aerospace arm has secured new contracts worth $310m in the fourth quarter (4Q) of 2014. These new orders involve projects ranging from airframe, component and engine maintenance, to VIP completions and engine wash.

Included in the 4Q2014 contracts is a five-year Maintenance-By-the-Hour (MBH™) contract signed with a returning airline customer in Asia, which operates a fleet of Boeing 737NG aircraft. Under the agreement, ST Aerospace will provide MBH™ support services covering component repairs, consignment of spares, as well as access to its inventory pool of rotables worldwide.

Additionally, the aerospace sector’s VIP completions division secured heavy maintenance contracts for three Boeing 757 aircraft, for a Head of State and two VIP customers. This steady stream of business aircraft maintenance activities reinforces ST Aerospace’s success as a one-stop specialist in providing integrated aviation services for VIP customers.

On engine total support, ST Aerospace’s Singapore-based engine facility has signed a two-year contract with a regional low cost airline for the engine MRO of its CFM56-7B engines. Additionally, multi-year contracts have been sealed with customers in Asia Pacific, Europe and the US for EcoPower® engine wash services.

In 4Q2014, the aerospace sector redelivered a total of 238 aircraft for airframe maintenance and modification work. In addition to airframe redeliveries, a total of 12,145 components, 50 landing gears and 43 engines were processed, while 1,927 engine washes were conducted for both commercial and military customers.

The fourth quarter’s aircraft redeliveries included the first Boeing 767 aircraft to a Japanese airline, and two additional Boeing 767 for a North American airline, after a full cabin reconfiguration programme. The cabin interior completion for the Japanese airline’s aircraft also saw the award of the supplemental type certifications from the US Federal Aviation Administration (FAA) and the Japan Civil Aviation Bureau.

On aircraft capability, the aerospace sector’s airframe facility in Guangzhou has received maintenance organisational approvals from the Department of Civil Aviation Malaysia and Civil Aviation Authority of the Philippines, for Airbus A320 aircraft, further extending the geographical range of its maintenance capabilities.

On passenger-to-freighter conversions, ST Aerospace completed the critical design review phase for the engineering development of the A330-300P2F conversion, marking a significant step forward for the A330P2F programme.

On pilot training capabilities, its US flight training academy has received approval from the Civil Aviation Authority of Singapore, to conduct commercial pilot training programmes in Hondo, Texas. This is in addition to its existing certification from FAA.

The above developments are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.