Austal drives promising result

Shipbuilder Austal has reported a 208 per cent rise in profit to $28.9 million for the six months to December and declared its first dividend since 2011.

Austal said the 34.5 per cent increase in revenue to $680 million was driven by its four main vessel programs: the littoral combat ship and joint high-speed vessel, which are being constructed at the company’s US shipyard; and the cape class patrol boat and high-speed support vessel, which are being built at its Henderson shipyard.

Austal declared an interim dividend of 1 cent per share, fully franked, the first dividend it has declared since August 2011.

“We are demonstrating success in achieving higher margins and have continued to support the business by paying down debt and attaining an appropriate balance sheet structure,” chief executive Andrew Bellamy said.

“Austal is now in a strong financial position by delivering on these objectives.”

The company’s shares lost 0.9 per cent, closing at $1.57 per share.