Gul Yard employs technology to support operations, workplace safety and eco-friendly practices

 

ST Engineering has opened a &ldquo smart&rdquo shipyard to replace its Tuas Yard when the latter&rsquo s lease expires at the end of the year.

 

Gul Yard, at 55 Gul Road, is twice the size of Tuas Yard and employs technology to support yard operations, workplace safety and eco-friendly practices.  

 

Spanning a site area of 141,000 square metres (sq m) and a gross floor area of 74,593.2 sq m, its greater capacity lets it handle larger and more complex projects with greater efficiency, said ST Engineering. 

 

The company added that the greater yard size will shorten turnaround times to better support local naval requirements, and enable it to explore new market segments.

 

These include offshore renewables projects, offshore support vessels for the oil and gas industry, as well as support services for local and international customers.

 

The Gul Yard was acquired for S$95 million in February 2023 to support ST Engineering&rsquo s marine business and maintain the competitiveness of its ship repair segment. 

 

It was unveiled at a ceremony officiated by Desmond Tan, Senior Minister of State in the Prime Minister&rsquo s Office, on Thursday (Sep 19).

 

Tan Leong Peng, ST Engineering&rsquo s president of marine, said: &ldquo Since the acquisition of the yard, we had plans to invest about S$60 million to develop new infrastructure and acquire new capabilities.&rdquo  

 

Alongside its expanded capacity, the new yard will be integrated with ST Engineering&rsquo s Benoi Yard to create a &ldquo seamless, unified network&rdquo that optimises project coordination, resource allocation and capacity management, said the company.

 

As a &ldquo next-generation smart yard&rdquo , the Gul Yard is equipped with 5G infrastructure that delivers fast and pervasive connectivity to support advanced automation, real-time data analytics and operational efficiency, it added. 

 

It will deploy artificial intelligence-powered technologies, including a proprietary integrated yard management system that oversees yard operations and streamlines workflow &ndash from planning and resource allocation to tracking project milestones and predicting potential bottlenecks.

 

Predictive maintenance algorithms that detect early signs of equipment failure to prevent unplanned downtime, and a condition-based monitoring system that monitors equipment and ships in real time are also among the technologies the yard will use.  

 

To improve workplace safety, ST Engineering&rsquo s safety and video analytics solution Agil Vision will be deployed with security robots to identify potential hazards in real time and provide automated safety alerts. 

 

Drones will also inspect hazardous, hard-to-reach areas, while Internet of Things-enabled devices such as smart watches and helmets provide real-time updates on work progress and workers&rsquo safety. 

 

Tan said: &ldquo There are also plans to have similar digital advancements at our Benoi Yard. With both yards at the cutting edge of technology, we can then leverage their combined strengths to unlock new opportunities locally and globally, contributing to Singapore&rsquo s continued growth as a global leader in the maritime industry.&rdquo

 

The new yard also aims to significantly cut carbon emissions by 2034, by adopting renewable energy sources such as ammonia, hydrogen, biofuel and solar power.

 

In line with these efforts, it will reduce fossil fuel reliance by deploying electric-powered automated guided vehicles and buggies, as well as minimise waste through recycling and scrap sorting. 

The rating comes as the counter&rsquo s share price has outperformed the Straits Times Index and is likely to continue, says analyst Shekhar Jaiswal

 

RHB raised its target price on Singapore Technologies Engineering (ST Engineering : S63 +1.08%) to S$5.32 from S$5 after rolling forward its valuation base year to fiscal year 2025. It has a &ldquo buy&rdquo recommendation on the counter.

 

The rating comes as the counter&rsquo s share price has outperformed the Straits Times Index and is likely to continue, said analyst Shekhar Jaiswal on Wednesday (Sep 18).

 

He believes that ST Engineering is &ldquo well-positioned&rdquo to deliver &ldquo steady dividends&rdquo and grow its profit at a compound annual growth rate of 15 per cent from 2023 to 2026.

 

Growth in its bottom line will be buoyed by strong demand for aviation maintenance, repair and operations (MRO) services, as well as a potential recovery in the company&rsquo s urban solutions and satellite communications (USS) segment, said Jaiswal.

 

&ldquo Because of strike action, Boeing&rsquo s operations have been impacted, and we believe this could make the shortage of jetliners worse worldwide and force airlines to keep using older aircraft for longer,&rdquo he added.

 

&ldquo This would, in general, mean more work for both airframe and engine MRO service providers,&rdquo noted Jaiswal.

 

Despite growth in the USS segment for H1 FY2024 missing the research house&rsquo s expectations, Jaiswal continues to like the stock. This comes as he believes ST Engineering&rsquo s focus on improving processes and optimising costs should lift its earnings before interest and tax.

 

Additionally, the analyst also noted that the company&rsquo s earnings could be boosted by the impending interest rate cuts.

 

&ldquo Amid our expectations of two rate cuts in H2 2024, and additional rate cuts in 2025, we see a possibility of lower interest costs next year, which could further boost earnings,&rdquo he said.

 

This is because some 39 per cent of ST Engineering&rsquo s debt is exposed to floating interest rates.

 

ST Engineering&rsquo s S63 -1.97% urban solutions business has secured a contract to provide its AGIL Passenger Information System (PIS) for 65 new six-car passenger trains in Australia as part of the Queensland Train Manufacturing Program (QTMP). 

 

According to an Aug 22 announcement, the contracted scope has commenced and is expected to be completed in 1Q2030. 

 

The QTMP will support Southeast Queensland&rsquo s population and economic growth, as well as the Brisbane 2032 Olympic and Paralympic Games, says the company.

 

According to ST Engineering, the enhanced AGIL PIS boasts features like a &ldquo hearing loop&rdquo , which can transmit audio directly to hearing aids while filtering out background noise for clear audio reception. This will help passengers with hearing loss. 

 

Another feature is the Automated Real-time Passenger Counting System (ARPC). Using video analytics, the ARPC provides accurate, real-time information on passenger density within train cars. The system helps train operators dynamically regulate train schedules to better manage passenger loading and informs passengers on station platforms about less-crowded train cars, says ST Engineering. 

 

&ldquo In addition to strengthening our presence in Australia, this contract marks our largest international PIS win to date, showcasing our rail capabilities,&rdquo says Chew Men Leong, president of urban solutions at ST Engineering. &ldquo It underscores our commitment to delivering innovative, quality and reliable rail solutions. We look forward to contributing our expertise to this transformative project in Queensland.&rdquo

 

Singapore Technologies Engineering (ST Engineering) has posted earnings of $336.5 million for 1HFY2024 ended June, 20% higher y-o-y compared to the previous corresponding period.

 

The company recorded a revenue of $5.52 billion for 1HFY2024, a 14% growth y-o-y, driven by higher contributions from all three business segments. 

 

Group ebitda was $786 million, up 11% y-o-y from $711 million. Group ebit increased by 18% y-o-y to $523 million from $444 million.

 

The commercial aerospace (CA) segment revenue grew 20% y-o-y to $2.23 billion, driven by higher revenues from aerospace maintenance, repair, and operations (MRO) and aerostructures and systems sub segments. 

 

The defence and public security (DPS) segment revenue grew 12% y-o-y to $2.37 billion with the increase largely driven by its digital systems and cyber and marine sub-segments, even as defence aerospace and land systems sub-segments recorded higher revenues y-o-y.

 

The urban solutions and satcom (USS) segment revenue was $918 million, 3% higher y-o-y, attributed to higher revenue from the urban solutions sub-segment which includes TransCore, offset by lower revenue from Satcom sub-segment. 

 

See also: CapitaLand Investment' s net profit fell by 6% y-o-y in 1HFY2024

 

In 1HFY2024, commercial sales and defence sales accounted for $3.9 billion and $1.6 billion respectively of the company' s revenue. As at June 30, ST Engineering held $430 million in cash and cash equivalents.

 

The company secured $6.1 billion of new contracts for 1HFY2024, including $3 billion announced for 1QFY2024. In 2QFY2024 alone, the Group won $3.1 billion in new contracts, comprising $1.29 billion for CA, $0.96 billion for DPS and $0.81 billion for USS.

 

ST Engineering ended 1HFY2024 with an order book of $27.9 billion, expecting to deliver about $4.9 billion from the order book in the remaining months of 2024. 

 

The company has declared a second interim dividend of 4 cents per ordinary share, payable on September 5.