Austal secures a new contract from the Government of Trinidad and Tobago (GORTT) to deliver the next-generation vessel by mid-2020.
On Tuesday, Austal Limited (ASX: ASB) announced that it has inked a $97.70 million contract to design and build new 94m high speed catamaran ferry for GORTT-owned National Infrastructure Development Company(NIDCO). The contract will see Austal developing a designated 94m AutoExpress ship that will provide a high speed daily-services to transport passenger and vehicle between the islands of Trinidad and Tobago.
Austal has already started with the designing of the ship in Australia which has been advanced to the level required to start off the initial construction. The design of the ship underscores its capability to carry 250 cars and 926 passengers at speeds of 37.5 knots. Moving to building front, the ship is planned to be constructed in Austal’s new facility in Vietnam.
Chief Executive Officer of Austal Limited, David Singleton stated that AutoExpress ships designed in the past two years have marked a great success to the company which has now turned into the ship contracts worth circa A$300 million.”
With this latest order, Austal’s global fleet in operations has reached to over 300 vessels. In Trinidad itself, Austal has a fleet of six monohulled fast patrol craft which are 30m and four catamaran Water Taxis which are 41m.
Vice President of Austal’s Sales and Marketing , Ben Marland stated “Since past two years, the strong international market for high speed aluminium ferry has provided a record order book for Austal with future orders now already in place. This order will add to the global fleet of over 300 Austal vessels already in operation”
Austal’s new shipyard in Vietnam that started its operation in November 2018 is expected to return profitable outcome in its first year of operations and expand to over 450 headcounts from just under 100 employees at the time of commencement. Further, the top management confirmed the company’s commitment to develop the high speed aluminium ships across the globe.
Austal currently holds large ship contracts including an 82m and two 117m trimaran for JR Kyushu of Japan, and Fred Olsen S.A. of the Canary Islands, respectively. Moreover, Austal also designs and built the Expeditionary Fast Transport (EPF) and Littoral Combat Ship (LCS) for the Unites States Navy. Currently, more than 48 vessels of Austal are in design or built phase across the company’s shipyards in Australia, the United States, China, Philippines, and Vietnam.
At the time of writing, 5 December 2018 (1:54 PM AEST), Austal shares are trading at $1.902 with negative daily price change of 2.462%. Currently, the PE multiple is 17.260 x with market capitalization of $686.39 million. Over the past one year, the stock has witnessed a positive performance change of 16.42%
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