Austal sells ship for $61.5m

Shipbuilder Austal has sold one of its ships, a 102 metre trimaran stock vessel, to Condor Ferries for $61.5 million.

Condor Ferries is a ferry service business that carries guests and vehicles between France, the United Kingdom and the Channel Islands.

Austal said the proceeds would be used to pay down infrastructure-related debt, on the back of a $2.8 billion order book, with commercial and variant-style defence vessels, and existing vessel program extensions in the works.

“It provides significant additional capital flexibility for the company as we focus on winning new work and delivering on our significant order book,” Austal chief executive officer Andrew Bellamy said.

Austal said the vessel would undergo $6 million work of modifications, which would be carried out at the company’s commercial shipyard in the Philippines.

In March Austal was awarded a deal from the US Navy to start construction on two combat ships, which helped raise the company’s order book significantly in the last financial year.

Austal’s share price rose by 5.53 per cent to $1.14 per share at the close of trading.