• An Austal Auto Express 80 catamaran. Credit: Austal
    An Austal Auto Express 80 catamaran. Credit: Austal
  • Artist's render of the PPB design. Credit: Austal
    Artist's render of the PPB design. Credit: Austal
  • Launch of the 70 metre Large Crew Transfer Vessel constructed by Austal for Caspian Marine Services of Azerbaijan in June 2016. Credit: Austal
    Launch of the 70 metre Large Crew Transfer Vessel constructed by Austal for Caspian Marine Services of Azerbaijan in June 2016. Credit: Austal
  • The first HSSV will be delivered to the Royal Navy of Oman in early 2016. Credit: Austal
    The first HSSV will be delivered to the Royal Navy of Oman in early 2016. Credit: Austal
  • Rendition of the Austal Philippines built high speed offshore crew transfer vessel. Credit: Austal
    Rendition of the Austal Philippines built high speed offshore crew transfer vessel. Credit: Austal
  • LCS 10 (USS Gabrielle Gifford) built by Austal USA is rolled out of their production facility in Mobile, Alabama. Credit: Austal USA
    LCS 10 (USS Gabrielle Gifford) built by Austal USA is rolled out of their production facility in Mobile, Alabama. Credit: Austal USA
  • The USNS Spearhead (JHSV 1) high-speed catamaran transport ship. [Photo:Austal]
    The USNS Spearhead (JHSV 1) high-speed catamaran transport ship. [Photo:Austal]
  • Austal's main shipyard at Henderson, Western Australia.
    Austal's main shipyard at Henderson, Western Australia.
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Austal rides high on back of strong order book

1 March 2018
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Austal has reported a net profit increase of 174 per cent thanks to an order book totalling $3.4 billion across 13 vessel programs.

The company's US arm has continued to enjoy success with the US Navy recently awarding it's 15th Littoral Combat Ship (LCS) order to Austal USA.

Austal CEO David Singleton said the LCS program has entered a reliable and consistent period of production with the company’s 6th vessel now delivered and a further nine vessels in the pipeline.

“Outside of the USA, our success in winning more than $380 million in commercial ferry contracts in the half capped off a strong calendar year in this market particularly for the larger, more profitable vessels.”

In view of this, the company is looking to expand its construction footprint in Asia. According to Singleton, the results have also been buoyed by improved construction efficiencies and procurement gains across its entire operations.

“Austal has made a 20 per cent productivity gain in production hours in the past two years which is an outstanding achievement for the ship building team.”

He added a major focus on procurement savings through better design for manufacture will remain a significant focus in the future given that up to 90 per cent of the cost of its ships derives from the company’s supply chain.

Austal is currently engaged in contract negotiations with successful Sea 1180 OPV bidder Luerssen along with fellow WA-based shipbuilder and Civmec subsidiary, Forgacs Marine and Defence.

Singleton said as a result of the negotiations, the timeline and nature of Austal’s role in the construction of the 10 vessels to be built at Henderson from 2020 is unclear.

“We will update the market when the outcome is clear.”

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