ST Eng’g net profit up 9.6% to $586.5m in 2023; total dividend is 16 cents

Revenue for its commercial aerospace and USS segments rose.

ST Engineering reported a net profit of $586.5m for FY2023, 9.6% higher compared to the $535m reported in the previous year, its latest financial statement showed.

The board of directors has proposed a final dividend of 4 cents per ordinary share. Combined with the three quarterly interim dividends, the total dividend for the financial year of 2023 will be 16 cents per ordinary share. This translates to a dividend yield of 4.4%.

ALSO READ: ST Eng'g net profit up 0.2% to S$280.6m in H1; interim dividend is 0.4 cents

Revenue rose 11.8% to $10.1b, from just $9.04b previously. Earnings before interest, tax, depreciation and mortisation (EBITDA) increased by 16.3% to over $1.45b in 2023, from $1.25b in 2022.

Per segment, the commercial aerospace (CA), and the urban solutions and satcom (USS) segments saw revenues rise. CA revenue jumped 29% to $2.05b in 2023 compared to a year earlier. Earnings before interest and taxes (EBIT) was $160m, a 35% increase.

The USS revenue, meanwhile, rose by 4% to $1.05b. EBIT was up 7% to $44m.

The defence and public security (DPS) segment, meanwhile, reported a flat revenue of $2.13b. EBIT was 40% higher at $267m. If excluding revenue from US Marine, revenue would have been 5% higher.

Finance costs rose 52.9% to $210.4m, whilst profit before tax is 17.9% higher at $704.2m.

The full year earnings per share (EPS) is 18.82 cents for 2023, compared to 17.18 cents previously.