Once the initial contract is won the "future" contracts are ASB's to lose. it is terribly expensive and years of delays to not provide the contracts to the initial prime. With Eastern, they stuffed the OPC contract up to the point where Coast Guard had no choice but to re-tender. however that has cost CG years in delays and a lot of money for ASB to get its design up and running.
The downside of this LCU is that it is such a small amount. If we extrapolate the additional wins (not accurate I know) - it's still only a AUD560m contract which may deliver $42m EBIT over its life of probably 4-5 years. Not exactly exciting stuff.
ASB Price at posting:
$1.95 Sentiment: Hold Disclosure: Held
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