Singapore Technologies Engineering (S63) H1 2023 earnings summary

Executive summary

• 1H2023 revenue rose 13.9% YoY to $4.863b, EBITDA increased 16.1% to $710.5m and EBIT rose 15.5% to $444.2m.

• Reported net profit was nearly flat at $280.6m; adjusted for specified one-off items, BOP net profit increased 26% YoY to $300m.

Financial highlights

• PBT was $351.4m, up 0.1% YoY; net profit was $280.6m, up 0.2%, and EPS was 9.01 cents, up 0.2%.

• Profit from operations increased 16.8% YoY to $420.8m; net finance costs rose to $92.8m from $33.5m.

• Cash and cash equivalents stood at $387m at 30 June 2023.

Outlook and guidance

• Urban Solutions & Satcom FY2023 EBIT expected to be comparable to 2022, supported by a significantly stronger 2H2023.

• TransCore remains targeted to achieve earnings accretion from the second year post-acquisition.

• About $4.4b of the $27.7b order book is expected to be delivered in the remaining months of 2023.