Austal bolsters order book

Henderson-based shipbuilder Austal has valued a suite of recently secured domestic and overseas work at more than $300 million.

Among them was a two-year contract to sustain two cape-class patrol boats that Austal had previously built for the Government of the Republic of Trinidad and Tobago in 2021.

Work for that contract will be undertaken in Trinidad and Tobago and is expected to continue until 2024.

Austal chief executive Paddy Gregg said the contract provided important longer-term revenue to the company.

“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 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.

In a separate contract, Austal has also been booked by the Royal Australian Navy to contract another two evolved cape-class patrol boats.

It takes its total number of vessels in Austal’s pipeline to eight, which it says will extend production at the shipyard through to 2024.

In addition, Austal’s US subsidiary has been tasked with drafting detailed design and construction for an auxiliary floating dry dock for the United States Navy.

The floating dock, which will be used to service large combat vessels and missile cruisers, will be constructed at Austal USA’s recently opened steel manufacturing facility in Alabama.

According to Austal, the 211-meter-long dock will have a lifting capacity of over 18,000 tonnes and a working area of nearly 8,500 square meters.

Austal shares last traded at $1.83, down 1.24 per cent.