No staffer assisting probe, says ST Engg

It’s also not aware of any ex-employee helping CPIB probe

ST Engineering has denied that any of its unit’s employees are assisting with Corrupt Practices Investigation Bureau (CPIB) investigations being carried out on the former chiefs of the Singapore Civil Defence Force (SCDF) and Central Narcotics Bureau (CNB).

In a statement issued yesterday as a clarification to The New Paper’s (TNP) report, the group said: ‘We wish to clarify that none of ST Electronics’ executives has been called up by the CPIB to assist with investigation referred to in The New Paper’s report.’

TNP had reported yesterday that it ‘understands that an ST Electronics executive is assisting with CPIB’s investigation’.

ST Electronics is the electronics arm of ST Engineering and had been awarded a $34 million deal by the SCDF for a command-and- control system in 2009.

Asked whether any of its former employees are assisting in the investigations, ST Engineering said that it was not aware of any ex-employees being investigated.

On whether any of the deals involving ST Engineering was a matter of interest for the investigations, a spokesman said, ‘We have no privy information as to which project or projects are investigated by the CPIB.’

Previous media reports have mentioned a female executive working for a supplier of IT products and services as the link between the two men being investigated.

Former SCDF chief Peter Lim Sin Pang was arrested on Jan 4 while his counterpart Ng Boon Gay – formerly director of the CNB – was arrested on Dec 19 last year.

Both – currently out on bail – were arrested under the Prevention of Corruption Act following allegations of ‘serious personal misconduct’ and have since been replaced at their respective agencies.

In a statement on Wednesday night, Head of Civil Service Peter Ong said: ‘I am sure the news of the investigations must have come as a shock to my fellow public officers.

‘I would urge them to remain steadfast in their duties and committed to the core values of the Public Service which are integrity, service, and excellence, and not let this affect our commitment to serve Singapore and Singaporeans.’

ST Engineering adds $350m to order book

SINGAPORE Technologies Engineering clinched $350 million of contracts in the last quarter of 2011, including a light-rail communications project in a third Taiwan city, the company said yesterday.

The contracts are not expected to have any material impact on net tangible assets per share and earnings per share for the current financial year, the diversified engineering group said.

ST Engineering’s electronics and information technology arm, ST Electronics, received a contract to design and install a communications system for the Taichung City light-rail transit Wuri-Wenxin Beitun line. Work will begin in the first quarter of 2012 with completion targeted by 2017.

ST Electronics had previously secured communications contracts for mass rapid transit systems in Taipei and Kaohsiung.

ST Electronics and ST Marine were also tapped to upgrade landing ship tanks for the Singapore Navy.

ST Marine has also been contracted to upgrade the heating, ventilation and air-conditioning system and accommodation piping system for pipe-laying vessel Castoro 8. Delivery of the vessel is expected in the second quarter of 2012.

ST Engineering reported an order book of $11 billion at the end of September 2011, and is forecasting revenue and profit before tax for 2011 comparable to 2010.

Mainboard-listed shares of ST Engineering closed at $2.84 yesterday, up one cent or 0.35 per cent.

ST Engineering adds $350m to order book

SINGAPORE Technologies Engineering clinched $350 million of contracts in the last quarter of 2011, including a light-rail communications project in a third Taiwan city, the company said yesterday.

The contracts are not expected to have any material impact on net tangible assets per share and earnings per share for the current financial year, the diversified engineering group said.

ST Engineering’s electronics and information technology arm, ST Electronics, received a contract to design and install a communications system for the Taichung City light-rail transit Wuri-Wenxin Beitun line. Work will begin in the first quarter of 2012 with completion targeted by 2017.

ST Electronics had previously secured communications contracts for mass rapid transit systems in Taipei and Kaohsiung.

ST Electronics and ST Marine were also tapped to upgrade landing ship tanks for the Singapore Navy.

ST Marine has also been contracted to upgrade the heating, ventilation and air-conditioning system and accommodation piping system for pipe-laying vessel Castoro 8. Delivery of the vessel is expected in the second quarter of 2012.

ST Engineering reported an order book of $11 billion at the end of September 2011, and is forecasting revenue and profit before tax for 2011 comparable to 2010.

Mainboard-listed shares of ST Engineering closed at $2.84 yesterday, up one cent or 0.35 per cent.

ST ENGINEERING

S$2.68-STE.SI

• STE was, on Wed Dec 28th back to the $2.66 low first reached in mid August, itself the lowest since 2009.

• The stock had bounced strongly to $2.86 in early December after testing $2.67 on Nov 30.

• The significance of the technical support at $2.60-2.70 area lies in the fact that it was the top of the recovery range that prevailed through Apr – Sept’09.

• The uptrend line connecting the low points of Oct’08 ($1.99) and Feb’09 ($2.06) presently points to $2.40-2.50 as the next support should $2.66 give way.

• Assuming an unchanged dividend of 14.55 cents for 2011 as for 2010 (3 cents interim, 4 cents final and 7.55 cents special), yield at current price would be 5.5% and 5.8-6.1% if the stock drops to $2.40-2.50.

• Earnings for the first 9 months of 2011 are 8% ahead of the same period last year.

• This is not bad for a defensive stock like ST Engineering, whose biggest division (ST Aerospace) counts on the Singapore Defense as key customer.

• Buy.

ST Engg lands $441m supply vessel job

ST Engineering’s US shipyard, VT Halter Marine, has secured a shipbuilding contract worth $441 million from New York-listed Hornbeck Offshore Services Inc.

Under the contract, VT Halter will construct eight 97.2 metre long offshore supply vessels (OSV) – the Super 320 – with options for up to 24 more, the company said yesterday.

The Super 320 design is an enlarged version of the 88-metre platform supply vessel, HOS Coral, which VT Halter delivered to Hornbeck in March 2009.

Particular attention to stringent regulations for environmental stewardship was given to the design of Super 320, which VT Halter had developed for Hornbeck.

The OSVs will include a double-hull that eliminates any fuel storage adjacent to the sideshell, and propulsion machinery that meets the requirements of EPA Tier 3 for stack emissions.

It will have about 20,900 barrels of liquid mud carrying capability, 1,102 square metres of deck area and a fire-fighting class notation.

These vessels will be constructed in VT Halter’s yards at Moss Point Marine and Halter Moss Point in Mississippi.

Construction of the first vessel is expected to commence in the first quarter of 2012 while engineering work has already begun.

Deliveries of the first and eighth vessels are planned for October 2013 and September 2014 respectively.

The first option for the additional vessels is required to be exercised by September 2012 and may be exercised individually or in a series.

Delivery dates for option vessels are about 26 months following the option exercise.