AUSTAL’S first half of the 2019 financial year summary showed significant growth, which, according to the company was driven my continuing improvements across the ASX-listed company’s US Navy shipbuilding programs, commercial ferry contracts, and growth across its US support business.

The company generated $851.5m across its shipyards, with Australasia making up 20% of revenue, reflecting the benefit of investments in expanding capacity across the segment.

 Earnings before interest and tax were up 52% to $40.4m and net profit after tax was $23.7m, slightly higher than the higher corresponding period.

The company’s total revenue was at $851m, up 31% on the same period last year. Austal has 47 vessels on order across five shipyards in the US, Australia, the Philippines, Vietnam and China, in addition to 20 vessels under sustainment or refurbishment, all supporting the company’s FY 2019 guidance of $1.9bn.

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Austal chief executive officer David Singleton said the company had delivered strong revenue and earnings in the half but what was even more pleasing is what lies beneath the numbers.

“For example, Austal generated more than $100m in operating cash flow, enabling us to increase interim dividends and provide scope to further invest in long-term business growth following the recent expansion of our commercial shipbuilding capabilities in Australasia,” he said.

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