Ann: Austal USA awarded US Coast Guard OPC contract, page-10

https://thewest.com.au/business/man...rol-cutter-deal-with-us-coast-guard-c-7366506

$4.4b potential in Austal’s new offshore patrol cutter deal with US Coast Guard

Daniel NewellThe West Australian
Fri, 1 July 2022 8:39AM
Daniel Newell


Austal USA will build 11 x 110 metre Offshore Patrol Cutters for the United States Coast Guard Credit: Suppied/Austal

The design and construction of a fleet of new patrol boats for the US Coast Guard could be worth more than $4 billion to WA-based shipbuilder Austal.

The company announced on Friday that it had secured a contract to deliver a 110m-long offshore patrol cutter, with options for another 10 vessels. If fully exercised, the orders could be worth up to $3.3 billion ($4.35b).
The potential windfall sent Austal shares soaring in the first half hour of trade, up 24.4 per cent to $2.24.

With a range of 10,200 nautical miles, the new patrol boats could be used for law enforcement, drug and migrant missions and search and rescue operations. They will also support Arctic objectives by helping regulate and protect emerging commerce and energy exploration in Alaska.




Austal chief executive Paddy Gregg said it was the third steel shipbuilding program awarded to its US operations and was an acknowledgement of the expanded capability of its shipyard in Mobile, Alabama.

“The United States Coast Guard’s new offshore patrol cutters are an outstanding opportunity for Austal USA to further demonstrate the shipyard’s new steel shipbuilding capability; based on years of proven construction experience through the delivery of the LCS and EPF programs for the United States Navy,” Mr Gregg said.
“The offshore patrol cutters are a critical capability in the United States’ homeland security and the Coast Guard’s most important acquisition program, and the Austal USA team is very excited and proud to be delivering this major shipbuilding program for the USA.”

Construction is not due to begin until 2023 but Austal has flagged there will be some benefit to this financial year’s pre-tax earnings.

Austal last month revealed that WA mining billionaire Andrew Forrest has become its biggest shareholder.
The Fortescue Metals Group founder’s private investment vehicle Tattarang spent another $41.1 million between May 27 and June 16 buying up more stock and taking its voting power in the company from 7.567 per cent to 13.794 per cent, leapfrogging other major shareholders John Rothwell, Macquarie, Vanguard and Blackrock.
Tattarang has now poured close to $60m into purchasing stock since late last year.