Austal’s US orders lead to profit upgrade

Perth international shipbuilder Austal has upgraded its profit expectations following the receipt of a massive $4.35 billion contract for the detail design and construction of up to 11 Offshore Patrol Cutters (OPC, pictured) for the United States Coast Guard (USCG).

The first vessel has been contracted to the US Coast Guard with options for a further 10 vessels.

Awarded on July 1, the company has now assessed the positive impact of the OPC contract has on cost and labour utilisation assumptions used to calculate the company’s EBIT or operating earnings.

Austal has now upgraded its forecast FY22 EBIT from a previous $107 million to a figure of $120.7 million.

An audited EBIT will be revealed to shareholders when the company reports its FY22 financial results in late August.

Austal noted that the incumbent OPC manufacturer has appealed the award of the vessel contract to the company.

“Austral remains optimistic that both the integrity of the solicitation process and the selection of Austal USA…as the shipbuilder will be upheld.”

Austal will build the OPVs at its $100 million steel construction facilities at its Mobile, Alabama shipyard.

Picture: Austal

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