Australian naval shipbuilder Austal has said its business activities remain “largely unaffected” by Covid-19 and that it is on track to register annual increases in revenue and earnings.
Austal said on 7 April that despite the ongoing pandemic it maintains previously issued guidance of fiscal year (FY) 2020 group revenues of “no less than” AUD1.9 billion (USD1.2 billion). Group earnings before interest and taxes (EBIT) in FY 2020 are expected to be “no less than” AUD110 million, it added.
Australian shipbuilder Austal has said its business is largely unaffected by the Covid-19 pandemic. Strong forecasted revenues are partly attributed to its US business, which includes the ongoing programme to build Littoral Combat Ships (pictured) for the US Navy. (US Navy)
Compared to FY 2019, the figures represent increases of nearly 3% and 19% respectively. Austal said, “Operational and financial performance to date [is] largely unaffected by Covid-19.” It added, “Austal has a strong balance sheet, with a net cash position of AUD152.4 million as of 31 December 2019.”
Commenting on the company’s financial position, Austal CEO David Singleton said the company’s “robust balance sheet combined with a strong, coronavirus-resilient order book and continued efficient operating performance means Austal has never been in a better position to weather these current challenges”.
Austal said its guidance for FY 2020 is underpinned by its “strong customer base”, with the vast majority of its AUD4.3 billion order book attributed to military vessel programmes with the United States Navy (USN) and the government of Australia.