24 August 2020

Austal reports record profits for 2020

by Jon Grevatt

Australian naval shipbuilder Austal, a specialist in aluminium vessels, has reported record annual revenue and profit, with the company stating that Covid-19 had “little impact” on its operational and financial performance during fiscal year (FY) 2020.

Austal said in statements on 24 August that its revenue in the year to end of June was AUD2.08 billion (USD1.5 billion), a year-on-year increase of 13%. Profit after tax was AUD89 million, an increase of 45%, and earnings before interest and taxes climbed 41% to AUD130.4 million.

The company added that it had “good operations momentum” going into FY 2021, with its business “underpinned by multi-vessel defence programmes” and an orderbook of AUD4.3 billion. Supporting future growth, Austal also announced a new investment in the United States through which it intends to expand in the construction of steel vessels.

Austal has registered record annual revenue and profit due, in part, to a new contract announced earlier this year to construct six Cape-class patrol boats (pictured) for the Royal Australian Navy. (Austal)

The majority of Austal’s business is sourced from the US with two major projects under way for the US Navy: the Littoral Combat Ship (LCS) and Expeditionary Fast Transport (EPF) programmes. Austal said these “efficient and stable” projects contributed to about 76% of total revenues.

The company also confirmed a recently announced plan to invest USD100 million – partly supported by funding from the US Department of Defense – in building a “modern steel shipbuilding capability” near its in-country headquarters in Mobile, Alabama.

Austal said in statements that this development project, which will take two years to complete, will position the company to bid for work in a series of “significant new steel shipbuilding programmes for the US Navy”.

Australian naval shipbuilder Austal, a specialist in aluminium vessels, has reported record annual r...

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