ST Engineering Annual Report 2020

OUTLOOK The outlook for the marine industry continues to be subdued due to slow global economic growth, rising trade tensions and geopolitical risks. The industry continues to be plagued with excess capacity and intense competition. The call for decarbonisation remains and the industry continues to push for the use of green fuels such as LNG and fuel cells to meet International Maritime Organisation (IMO)’s stricter regulations. We are in a favourable position to break new business frontiers and ride on the momentum of greener fuels, in the areas of shipbuilding, repair and retrofitting. Shipbuilding Our core remains the defence segment and we continue to pursue opportunities in countries like Kuwait, Oman, Saudi Arabia, the United Arab Emirates, Singapore, as well as the U.S. In pursuing this growth, we remain open to collaborating with partners to deliver local content. We have also been agile and responsive to the growing demand for unmanned capabilities and have developed a range of unmanned surface vessels for coastal security and surveillance to meet the increasing need for autonomous craft for both military and paramilitary applications. On the commercial front, the trend is for major shipbuilders to seek opportunities in renewables given the push for decarbonisation. Besides interests in offshore renewables vessels, floating power plants also meet the constant demand for power generation in a green and sustainable way. Given our strong track record, bolstered by our design expertise and engineering capabilities, we continue to pursue opportunities in these niche segments. In the area of specialised vessels, there is a renewed interest in offshore installation vessels to meet the demands of operators with specific requirements for diving support vessels. Leveraging our past successes and track record to achieve wins in specialised vessels, we remain focused to capitalise on opportunities in this segment. Ship and Rig Repair Our ability to repair and convert offshore supply vessels and seismic support vessels reliably within a short period of time will allow us to leverage the floating production system market for further growth. We see opportunities for the conversion of specialised vessels such as floating power plants, floating gas platform units, service operation vessels and stone dumpers as market demand increases. As one of the largest repairers of dredgers in Southeast Asia, we are confident we can ride on the spike in demand for dredging and reclamation activities in the region when the global economy recovers. Singapore continues to be a preferred place for dredger owners for repairs and upgrades. In the U.S., our strategic location, excellent infrastructure and competent workforce put us in The Service Operation Vessel is designed based on our innovative eco-hull for low fuel consumption and enhanced seakeeping characteristics OPERATING REVIEW & OUTLOOK MARINE / ST ENG I NEER I NG 60