- Boatmaker Austal (ASB) lands $300 million in new contracts from the Trinidad and Tobago Coast Guard, the Australian Navy and the US Navy
- The company says the contracts diversify its long-term revenue base while utilising its shipbuilding and support expertise
- CEO Paddy Gregg says the contracts are a great demonstration of the company’s capability to take on multiple projects across naval shipbuilding and support programs in Australia and overseas
- Austal closes 1.89 per cent lower on the ASX with shares at $1.82
Boatmaker Austal (ASB) has landed $300 million in new contracts from the Trinidad and Tobago Coast Guard, the Australian Navy and the US Navy.
The company said the new contracts helped diversity its long-term revenue base while utilising its shipbuilding and support expertise.
For the Trinidad and Tobago Coast Guard, Austal will sustain two Cape-class patrol boats it previously built for the country’s government.
Under the Australian Navy contract, Austal will construct two additional Evolved Cape-class Patrol Boats (ECCPS) on top of the six already contracted by the Australian Government. The government announced the contract back in April this year, and Austal said the order had now officially been placed.
Finally, Austal will undertake the detailed design and construction (DD&C) of the US Navy’s new auxiliary floating dry dock medium (AFDM).
Austal CEO Paddy Gregg said the new contracts were a great demonstration of the company’s ability to take on multiple projects across naval shipbuilding and support programs in Australia and overseas.
“The Trinidad and Tobago support contract is another example of Austal constructing and then maintaining patrol vessels to ensure that they can operate safely and efficiently over extended durations, while providing important longer-term revenue to Austal,” Mr Gregg said.
The two 58-metre vessels, TTS Port of Spain (CG41) and TTS Scarborough (CG42), will be sustained by Austal in Trinidad and Tobago through to at least 2024.
“This is a perfect example of how Austal can support vessels constructed so that not only do the vessels continue to perform optimally for our clients but also create a recurring revenue stream post-construction,” Mr Gregg said.
The company was awarded a $324 million contract to construct six 58-metre ECCPBs for the Royal Australian Navy in May 2020 and delivered the first vessel in March 2022.
The other five vessels initially ordered are in various stages of production at the company’s Henderson shipyard in WA, while today’s contract adds two more ships to the final count.
Meanwhile, Austal USA has commenced construction of two Navajo-class towing and salvage (T-ATS) vessels for the US Navy, marking the commencement of steel shipbuilding at the company’s facility in Mobile, Alabama.
Officially opened last month, the US$100 million (A$143 million) facility was funded in equal halves by Austal and the US government.
These ships will be able to support current missions, including oil spill response, humanitarian assistance, and wide area search and surveillance.
Further, Austal Australia is delivering 21 steel-hull Guardian-class Patrol Boats for 12 Pacific Island nations and Timor Leste under the SEA3036-1 Pacific Patrol Boat Replacement Project, with fifteen patrol boats delivered since 2018.
Austal closed 1.89 per cent lower on the ASX with shares at $1.82.