Shipbuilding: ST Engineering Wins $311m in Contracts

ST Engineering reports that its marine sector won $311m worth of shipbuilding/repair contracts in the third quarter alone, including options for its shipbuilding business, as well as the ship and rig repair segments for progressive deliveries at its yards in Singapore and the US. In the US, the Naval Sea Systems Command (NAVSEA) awarded its US shipyard a contract, including options worth $244m for the detailed design and construction (DD&C) of two firm and up to four optional Auxiliary Personnel Lighter Small APL Class Berthing Barges. The anticipated delivery periods of the two firm vessels are in the second and third quarter of 2020, respectively. The options for the four vessels could be exercised for delivery during fiscal years 2019 to 2022.

In addition, Bouchard Transportation Co., Inc., awarded its US shipyard a $30m newbuild contract for one firm Articulated Tug Barge (ATB) Tug and an option for a second vessel to be exercised within 1Q2019.  

Repair Gains Momentum
The ship and rig repair business continued its momentum of winning new projects, securing contracts worth about $25.3m for both commercial and naval projects.  Its US repair business, situated next to its shipbuilding Pascagoula yard has gained traction for new orders, as it continues to cross-sell its repair and maintenance services to an expanded pool of customers. These contracts secured cover a wide-ranging scope - from repair of dredgers, offshore vessels, and oil & chemical tankers, to high engineering content conversion of an anchor handling tug supply vessel to carry methanol instead of cement.  The sector also secured its first refit on a naval platform for a foreign navy with operations in the Indo-Pacific region. On the chartering front, the Nova Star, a Roll-on/Roll-off Passenger Vessel has been leased for a 24-month bareboat charter and is currently deployed for service between Baltic Sea and North Sea.