ST Engineering saw revenues increase at its Commercial Aerospace business during its 2021 financial year, with the aerostructures & systems business offsetting weaker MRO revenue.
The Commercial Aerospace unit’s revenue of S$2.5 billion ($1.8 billion) in the 12 months to 31 December 2021 represented 6% growth over 2020, even though 2020 revenues reflect a strong first quarter before the impact of the coronavirus pandemic was felt.
The unit’s EBIT (earnings before interest and taxes) more than doubled to S$182 million for the full year, owing to the improved revenue and cost saving efforts.
ST Engineering notes that the MRO business “continued to be impacted by the subdued aviation sector.”
Aerospace MRO revenue for 2021 declined 4% to S$1.1 billion, while revenue at Aerostructures & Systems climbed 20% to S$1.4 billion.
Moreover, the value of assets under management at ST Engineering’s Aviation Asset Management unit rose 30% in 2021 to $1 billion.
The better annual results for Commercial Aerospace also reflect a very strong second half of 2021, where revenue jumped 25% to S$1.3 billion, which ST Engineering attributes to a “continued business recovery.”
Second half EBIT jumped six-fold to S$79 billion.
ST Engineering notes that it secured Commercial Aerospace contracts worth S$1 billion in the fourth quarter of 2021.
These included maintenance-by-the-hour contracts from Virgin Australia Airlines and China Airlines, Japanese maintenance and modification work, engine MRO contracts from Asian airlines, and cumulative orders for 21 Airbus A321PDF cargo conversions.
Overall, ST Engineering’s revenue for 2021 was S$7.7 billion. The company’s other major business segments are Urban Solutions & Satcom, and Defence & Public Security.