ST Engineering

ST Engineering: Group announced that Bouchard Transportation has exercised its option for an additional Articulated Tug Barge unit that was announced on 15 Feb 2013. The value of the unit is in the region of US$100m (S$125m). Both barges will measure 625 feet by 91 feet by 47 feet and each will have a 250,000-barrel capacity. They will be used to transport liquid petroleum. The barges will be American Bureau of Shipping and United States Coast Guard certified for Jones Act service. The 10,000hp twin screw ATB tug, classed by ABS as A1 Towing Vessel, Dual Mode, USCG Sub-chapter M, will be equipped with an Interconnected Coupler System. The construction of the first barge will begin in Apr 2013 at ST Engg's US shipyard, VT Halter Marine, with delivery scheduled in mid-2015. Construction of the second barge will begin in 4Q2013 with delivery scheduled in 1Q2016. Group trades at 22x trailing P/E, above its 5-year historical average P/E of 18.5x; and +1 std. dev. P/E of 21x.