ST Engineering closed 2013 with record orderbook worth $13.2b

Profit was up 10%.

According to DBS, after an uninspiring performance in 3Q, STE reversed the trend with a solid set of numbers for 4Q13, with net profit up 10% y-o-y to

S$167.5m on the back of 12% rise in revenue to S$1.9bn.

Here's more from DBS:

Except the Land Systems sector, all other divisions reported y-o-y growth in revenues, led by the Marine segment, where revenues were up 48% y-o-y on the back of strong project deliveries.

PBT margins were also maintained across sectors, with Group PBT margin of 11.1% flattish compared to 4Q12 and 3Q13.

However, for the full year-FY13, earnings growth was only 1% due to losses from “Others” segment – largely unprofitable non-core projects undertaken by ST Synthesis – and the impairment charge on its Ropax vessel, which has since been chartered out to a Canadian cruise ferry line for 3+7 years term.

Without these items, we believe FY13 net profit of S$581m could have been up almost 6% y-o-y.

Earnings outlook remains encouraging. Order wins were buoyed in 4Q13, with all segments reporting new contract wins in the quarter that were higher than the usual run rate.

As a result, STE closed FY13 with a record orderbook of S$13.2bn despite strong revenue recognition in 4Q13.

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