SINGAPORE—Revenue at ST Engineering’s Commercial Aerospace business surpassed pre-pandemic levels in the first six months of 2023, due to strong demand for components, freighter conversion, and engine nacelles.
In the second quarter alone, the Singapore-headquartered maintenance, repair and overhaul (MRO) company secured S$2.3 billion ($1.7 billion) in contracts—including Airbus A330P2F orders from an unspecified American lessor, a LEAP-1A quick-turn maintenance offload contract from Safran, and a heavy maintenance contract from a Japanese airline.
Revenue for the Commercial Aerospace business segment’s Aerospace MRO sub-segment improved 37% year-on-year to S$868 million; its Aerostructures & Systems sub-segment revenue was up 15% year-on-year to S$951 million; and the Aviation Asset Management sub-section’s total assets managed increased 38% over the year to S$1.9 billion.
In all, the Commercial Aerospace segment saw 32% year-over-year revenue improvement to S$1.9 billion, although EBIT weakened 3% to S$178 million.
Separately, the Aviation Asset Management business sold 11 aircraft to Keystone Holdings, a 50-50 joint venture set up by ST Engineering’s Commercial Aerospace unit and Japanese trading firm Sojitz Corporation. Aviation Week understands the 11 aircraft consist of a mix of A320neos, A320ceos and Boeing 737-800s.
ST Engineering says the sale is in line with its strategy of working with partners to grow its Aviation Asset Management wing. “The sale will also allow the group to improve capital efficiency by reducing capital employed,” the company said in a statement.
