ST Engineering secures up to S$2.6 billion polar security cutter contract from the US Navy
Singapore Technologies Engineering Ltd (ST Engineering) has announced that the US Department of the Navy has awarded VT Halter Marine, its shipbuilding business in Pascagoula, Mississippi, the Polar Security Cutter (formerly known as the Heavy Polar Ice Breaker) contract.
The US Department of the Navy has awarded VT Halter Marine as the Prime Contractor for a US$745,940,860 (about S$1b) fixed-price incentive-firm contract for the detail design and construction of the US Coast Guard (USCG) Polar Security Cutter (PSC). The PSC contract is a multi-year programme and a USCG major system acquisition to acquire up to three multimission PSCs to recapitalise the USCG fleet of heavy icebreakers.
This contract includes options which, if exercised, would bring the cumulative value of this contract to US$1,942,812,266 (S$2.6b). The first ship delivery is scheduled to occur in 2024. If the options are exercised, the second and third vessels are expected to be delivered in 2025 and 2027 respectively. The vessels are 460 feet in length with a beam of 88 feet overall, a full load displacement of about 33,000 long tons at delivery.
VT Halter Marine was involved in the design analysis study of the PSC since February 2017 and is currently in the production engineering studies support work since February 2019.
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.