Singapore Technologies Engineering (S63) H1 2022 earnings summary

Executive summary

• 1H2022 revenue rose 17% YoY to $4.27b and EBIT increased 8% to $384.6m despite a $125m reduction in government support.

• Stronger operating performance and cost savings supported base operating EBIT growth; adjusted net profit was 4% higher YoY after specified transaction and tax adjustments.

Financial highlights

• Revenue was $4.27b, up 17% YoY; profit from operations reached $360.3m, up 8%.

• EBIT was $384.6m, up 8%; PBT rose 3% to $351.1m.

• Net profit was $280.0m, down 5%; excluding $16m of TransCore transaction and integration expenses, net of tax, and the $11m tax-exempt JSS effect, adjusted net profit was $307m, up 4% YoY.

• EPS was 8.99 cents, down 5% YoY; net finance costs increased to $33.5m from $15.3m.

Outlook and guidance

• Order book was $22.2b at 30 June 2022, with $4.6b expected to be delivered in the remaining months of 2022.

• Robust order book and contract-win momentum were cited as supporting revenue visibility for the next few years.