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- Austal (ASB) wins a United States Coast Guard contract that could be potentially worth US$3.3 billion (A$4.35 billion)
- The contract is to design and construct up to 11 offshore patrol cutters (OPC) with construction set to begin in 2023 at Austal’s new shipbuilding facility in Mobile, Alabama
- Although the OPC contract was awarded in FY23, the contract will positively impact some cost assumptions used to calculate Austal’s FY22 earnings before interest and tax (EBIT)
- Austal said it is expecting its FY22 EBIT to be higher than the previously forecast $107 million
- ASB shares jump 24.2 per cent on the market this morning, trading at $2.24 per share at 11:34 am AEST
Austal (ASB) has been awarded a contract from the United States Coast Guard that could be potentially worth US$3.3 billion (A$4.35 billion).
The contract is to design and construct up to 11 offshore patrol cutters (OPC). The first vessel has been contracted, with potential for a further 10.
Construction of the vessel is expected to commence in 2023 at Austal’s new shipbuilding facility in Mobile, Alabama.
Although the OPC contract was awarded in FY23, the contract will positively impact some cost assumptions used to calculate Austal’s FY22 earnings before interest and tax (EBIT).
Due to this, Austal said it is expecting its FY22 EBIT to be higher than the previously forecast $107 million. The company can’t say how much the EBIT uplift will be and will inform shareholders as soon as it is calculated.
Austal CEO Paddy Gregg said the new contract with the United States Coast Guard is an “outstanding opportunity”.
“The offshore patrol cutters are a critical capability in the United States’ homeland security and the Coast Guard’s most important acquisition program, and the Austal USA team is very excited and proud to be delivering this major shipbuilding program for the USA,” he said.
The new OPC’s are capable of conducting a variety of missions including law enforcement, drug and migrant interdiction, and search and rescue operations.
ASB shares jumped 24.2 per cent on the market this morning, trading at $2.24 each at 11:34 am AEST.
