Austal Chief Executive Officer Paddy Gregg said: “The strong interim financial results were driven by excellent shipbuilding operating margins in both of our USA and Australasia operations, which flowed through to an enhanced bottom line.”

“This highlights the success of the pragmatic initiatives Austal has implemented to increase our efficiency, reduce our cost base and set the business up for sustained profitability.”

“Revenue was lower compared to the prior corresponding period, which was a product of a higher USD / AUD exchange rate, lower throughput in the USA, a reduction in Australasia commercial shipbuilding volume following the delivery of three large ferries and some COVID-19 delays.”

“Crucially, we have translated our robust earnings into strong operating cash flow, and maintained a healthy balance sheet, even as we invested cash into the future of our business through the MARRS acquisition in Mobile, conversion to steel shipbuilding in the United States, purchase of a dry dock launch facility for the Philippines and the BSE Maritime Solutions Group (BSE) acquisition in Australia.”

“Austal’s balance sheet strength has underpinned investments in new infrastructure and capabilities. We are now in an optimal position to pivot the business to capture new opportunities in USA steel shipbuilding and additional maintenance support contracts.”

“Our Australasia segment achieved an excellent financial result for the half, but needs to win new contracts to sustain that performance. It was pleasing to see Austal Vietnam successfully deliver its first vessel during the half, as well as the commencement of construction of another six Cape Class Patrol Boats for the Royal Australian Navy in Henderson, WA.”

Full report https://investor.austal.com/static-files/ea44d5eb-8acf-4fb0-80ef-e58447872540