ST Engineering Annual Report 2020

CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT high speed aluminium boats which aligns with our build experience and expertise, to weather the ongoing storm. Throughout the year, our Singapore and U.S. yards made good progress in shiprepair and rig repair, in the areas of project execution and development of business opportunities. We also made inroads in our environmental engineering business as we continued to grow our process engineering capabilities, while leveraging our proven track record. Sustainability is an integral part of how we do business. Addressing the challenges faced by our customers, we have continually innovated to develop green solutions that support their sustainability strategies. Besides leveraging our capabilities to support our customers in retrofitting and installing of ballast water treatment systems, hybrid propulsion, dual-fuelled LNG electric propulsion, we are also pivoting to the renewables segment by developing designs of green and sustainable vessels, such as Service Operation Vessels and Fast Crew Boats, to address the operational needs of today's offshore renewables industry. Shipbuilding On the naval front, we won a 12-month industrial study contract to perform trade-off studies and analyses for the auxiliary general ocean surveillance ship (T-AGOS(X)) programme from the U.S. Navy. This new class series will ultimately replace the existing fleet of four T-AGOS 19 and one T-AGOS 23 small waterplane area twin-hull ships, which are reaching the end of their service lives. During the year, the U.S. Navy exercised the option for the fourth Auxiliary Personnel Lighter-Small (APL(S)) Class berthing barge. We expect to deliver the first three berthing barges in 2021. Construction of the fourth berthing barge is expected to be completed end-2021. If the U.S. Navy exercises its remaining options for two additional units, the total contract value would be in excess of US$244m. We also delivered America’s first offshore Liquefied Natural Gas Articulated Tug and Barge (LNG ATB Tug) unit to marine transportation company Q-LNG Transport. The LNG ATB Tug will supply LNG to marine customers along the Southern East Coast of the U.S., and support growing cruise line demand for LNG marine fuel. Progress on the Polar Security Cutter contract, awarded by the U.S. Coast Guard in 2019, remained on track. Our U.S. yard has brought in new technologies such as robotic welding machines and plasma cutters for the construction of this highly specialised vessel, to upgrade our steel cutting capacity and expertise to the next level. Our entire build position, translation and launch process was overhauled to handle the weight of the Polar Security Cutter as we work towards the first delivery in 2025. To meet the demands of this newbuild programme, our U.S. yard will double its workforce and train them to be future-ready. We launched an apprenticeship programme with the Mississippi Gulf Coast Community College in September that was approved by the U.S. Department of Labor. This apprenticeship programme will build a pipeline of skilled shipbuilders and also create jobs in Mississippi, benefitting the shipbuilding industry as a whole. Awarded the U.S. Navy's contract to construct the fourth APL(S) Class berthing barge 57 ANNUAL REPORT 2 0 20 /