Singapore Technologies Engineering's shares are good value after a recent dip in price, according to an analyst. The Singapore-listed shipbuilder has had around 5% lopped off its market value despite recently signing a huge contract for offshore support vessels.

The company’s American unit, VT Halter Marine, will construct eight 6,200-dwt OSVs for US owner Hornbeck Offshore SGD 441m ($353m).

Mississippi-based Halter has options to build up to 24 more which could bring the total value of the deal to as much as SGD $1.7bn.

The new wins have boosted STE’s firm orderbook by 4% to SGD $11bn and should keep the company busy for some time, with construction set to get underway next year for delivery in 2013 and 2014.

OCBC analyst Eric Teo said the new orders mean the company is well placed to weather the current economic storm.