Austal: Multiple contracts worth over A$300m diversify Austal’s long-term revenue base
JUNE 20, 2022
Multiple contract awards worth A$300 million diversify Austal’s long-term revenue base
Austal Limited (ASX:ASB) is pleased to provide information on a number of contracts Austal has secured which help to diversify the company’s long-term revenue base while utilizing its shipbuilding expertise and support.
Austal has recently been awarded contracts for:
Support two Cape-class patrol boats that the company has built for the Government of the Republic of Trinidad and Tobago (Trinidad and Tobago Coast Guard), in the country
Build two more Evolved Cape Class Patrol Boats (ECCPB) for the Royal Australian Navy (RAN), announced by the Australian Government in April 2022.
To undertake the Detailed Design and Construction (DD&C) of the new US Navy Auxiliary Floating Drydock Mount (AFDM).
Together, the awarded contracts are worth more than A$300 million.
Austal Limited CEO Paddy Gregg said: “The new contracts are an excellent demonstration of Austal’s ability to undertake multiple projects across a variety of shipbuilding and support programs, in Australia and overseas.”
“The Trinidad and Tobago support contract is another example of Austal building and maintaining patrol boats to ensure they can operate safely and efficiently over long periods of time, while providing significant longer-term revenue to Austal.”
“The two additional advanced Cape-class patrol vessels announced by the Australian Government two months ago have now been officially ordered, bringing the total number of vessels to be built to eight; demonstrating great confidence in the platform of the vessel by the Royal Australian Navy, who already operate three of the patrol boats throughout northern Australia.”
“The competitively awarded $128 million contract for the floating drydock is Austal USA’s second steel vessel program for the United States Navy and clearly demonstrates the Navy’s confidence in the shipyard’s growing capability. of Mobile, Alabama, to deliver aluminum and steel vessels.”
Support contract for two Cape-class patrol boats
Austal has been awarded a two-year contract to maintain the two Cape-class patrol boats the company has built in its Australian operations for the Trinidad and Tobago Coast Guard (TTCG).
The two 58m vessels, TTS Port of Spain (CG41) and TTS Scarborough (CG42), will be supported by Austal in the country until at least 2024.
“We have been very clear that we want to grow Austal’s support business and this is a perfect example of how Austal can support ships being built so that not only do ships continue to perform optimally for our customers, but also creates a post-construction recurring revenue stream,” said Mr. Gregg.
Austal Australia will provide in-country support to the Trinidad and Tobago Coast Guard for the two Cape-class patrol boats designed and built by Austal Australia and delivered in 2021 for an initial period of two years (Image: Coast Guard of Trinidad and Tobago)
Two additional advanced Cape-class patrol boats for the Royal Australian Navy
Austal Australia won a A$324 million contract to build six 58m ‘advanced’ Cape-class patrol boats for the Royal Australian Navy in May 2020 and has already delivered one vessel, the ADV Cape Otwayin March 2022.
The remaining five vessels originally ordered are in various stages of production at the company’s shipyard in Henderson, Western Australia. The two additional ECCPBs, announced by the Australian Government on 18 April 2022 and valued at A$110 million (to be adjusted for relevant inflation impacts), bring the total number of vessels to be delivered to eight and extend production from the shipyard until 2024.
Austal Australia will build two more advanced Cape-class patrol vessels for the Royal Australian Navy, bringing the total number of vessels to be delivered to eight. (Image: ADV Cape Otway; Austal Australia)
Austal USA has begun construction of two NavajoT-ATS-class towing and salvage vessels for the United States Navy, marking the start of steel shipbuilding at the company’s facilities in Mobile, Alabama. Officially opened last month, the $100 million facility was funded 50/50 by Austal and the United States government.
The T-ATS program is a US$145 million contract to build two ocean-going, salvage and salvage tugs to support US fleet operations and will be a multi-mission common hull platform capable of towing heavy ships. These vessels will be able to support current missions, including oil spill response, humanitarian assistance, and large-scale research and monitoring.
The US Navy’s new Auxiliary Floating Dock Medium (AFDM) will also be built at Austal USA’s steel fabrication facility in Mobile, Alabama. The “Rennie” type floating dock will incorporate features to improve operability and maintainability, based on Austal USA’s experience of owning, operating and maintaining a similar dry dock at its repair facility of Mobile. With a lifting capacity of over 18,000 tons, an overall length of 211 meters and a working area of nearly 8,500 square meters, the drydock will have the capacity to service large vessels such as littoral combat vessels (LCS), Missile Destroyers (DDG), Guided Missile Cruisers (CG) and Landing Docks (LSD).
Austal Australia is also supplying 21 steel-hulled Guardian-class patrol boats for 12 Pacific island countries and Timor Leste under the SEA3036-1 Pacific Patrol Boat Replacement Project, with fifteen patrol boats delivered since 2018 Austal provides in-service support to both the Cape and Guardian class patrol boat fleets through an expanding network of service centers including Henderson, Western Australia, Cairns, Queensland and Darwin, Northern Territory. .
This ASX announcement has been approved and authorized for publication by Patrick Gregg, Managing Director of Austal Limited.
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Cameron Morse +61 433 886 871