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13 MAY 2019 AL CIRCLE

Austal shares updates on its current operations and full-year revenue guidance

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

The world’s largest aluminium shipbuilder Austal Limited (ASX: ASB) has reportedly released its New Zealand investor presentation where it provided updates on operations and full-year revenue guidance.

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Currently, the Australian shipbuilder is working on new age technologies such as improving fuel efficiency, digitisation of control systems, and new low emission fuels including LNG and battery-powered vessels. Another innovation-led product includes Auxillary Transport vessels. Besides, LCS Littoral Combat Ships and EPT Vessels ordered by the United States Navy are under construction in Alabama shipyard.

Besides the USA where Austal houses the most efficient aluminium shipyard, the company’s development in the Asian region is also noteworthy with the largest integration facilities.  The facilities in Vietnam and the Philippines are currently engaged in manufacturing two large vessels. Around 230 employees work at the Vietnam plant.

As per the updates in presentation, the company’s existing product suit appears consistent and profitable, while order book remains strong. At the present, the shipbuilder is working on a proposal for the US Navy (Future Frigate Concept) FFG[X] program that represents a major growth opportunity with a bigger and more sophisticated ship that the Navy budget suggests could be around US$800 million.

The large ferry construction is also running at a record level with almost 70 new orders, reported the company itself.

Austal posted a revenue hike by $201.2 million to $851.5 million in the first half of 2019, compared with the same period last year. NPAT witnessed a positive change too by about $0.5 million to come in at $23.7 million in H12019, compared with $23.2 million in the corresponding period of the previous year. For the full year, the company expects the revenue to range within $1.8 billion to $1.9 billion.

Tagged with:

Aluminium Oceania Australia

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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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