ASB - Austal Limited

[divs4ever]

Not sure of the Chinese ties and eventual effect, or the apparent non-disclose of cost overruns and fraud, but they have a long history of their ships not being up to scratch. It took a very long time to bring the LCS into service and then the first production run was cancelled due to poor performance only for a change of partnership and further orders. Not sure how they're running now. Apparently the Patrol Boats are pretty good. They are probably in the running for more smaller, faster, gun boats into the future, like the proposed corvettes for our Navy, which might drop out of the DSR. Will be another littoral combat ship for our coast line and through the archipelagos to the north. So, potentially more orders for allies through the pacific. I've never thought of investing in it. It doesn't dig stuff up out of the ground.

i watched in morbid fascination the Metal Storm saga ( resisting the temptation to invest )

got scorched with Newsat ( after some early trading success )

also watched the movie 'Pentagon Wars ' which confirmed some anecdotal comments on military procurement

so avoided ASB ( without putting it on the official AVOID list )

 

[Dona Ferentes]

up 41c to $2.01
Austal USA has been awarded a
US$113,906,029 fixed-price incentive (firm target) and firm-fixed-price contract for detail design of the Auxiliary General Ocean Surveillance Ship T-AGOS 25 Class for the United States Navy.

The contract includes options for detail design and construction of up to seven T-AGOS 25 class ships which, if exercised, would bring the cumulative value of the contract to US$3,195,396,097.

T-AGOS ships, operated by United States Military Sealift Command, support the anti-submarine warfare mission of the commanders of the Atlantic and Pacific Fleets by providing a platform capable of passive and active anti-submarine acoustic surveillance. The 110 metre, steel ‘small waterplane area twin hull’ vessels support the Navy’s Integrated Undersea Surveillance System by gathering underwater acoustical data using Surveillance Towed-Array Sensor System equipment.

Austal Limited Chief Executive Officer Paddy Gregg said the T-AGOS contract adds to Austal USA’s growing portfolio of steel shipbuilding programs and is a further demonstration of the US Government’s trust in Austal USA’s capabilities.

“T-AGOS is a unique auxiliary naval platform that plays an integral role in supporting Navy’s anti-submarine warfare mission. Austal USA is honoured to be selected to deliver this criticalcapability for the Navy, utilising our advanced manufacturing processes, state-of-the-art steel shipbuilding facilities and our growing team of shipbuilders.

 

[Dona Ferentes]

...and some speculations . Data room open ...

Takeover interest has buoyed Austal – as have recent deals with the US Navy – with shares rising 15 per cent in the last month to close at $2.65 on Monday. They have risen 30 per cent since 01 January, with a market capitalisation of around $960 million.

Hanwha’s defence and aerospace division is so far the only interested party outside the US. It faces competition for Austal from New York’s JF Lehman & Company, which specialises in investing in complex and regulated sectors, which has Morgan Stanley on hand to assist with due diligence. Then there’s Cerberus Capital Management, which has engaged Citi as it considers making an offer, while Washington’s Arlington Capital Partners is also interested...

 

[Dona Ferentes]

not huge but ongoing work..
.
ASB announced that its subsidiary, Austal USA, has been awarded a significant contract worth US$91,535,551 (AU$143.4 million) for the construction of three Landing Craft Utility 1700 class craft for the United States Navy.
.
talk of corporate action seems to have faded.

 

[Dona Ferentes]

Austal shares surge on Australian government deal for ships and patrol boats By Investing.com

Austal shares surge on Australian government deal for ships and patrol boats

au.investing.com

 

[Dona Ferentes]

up 10 per cent with an offer from South Korean outfit. Will it be allowed to happen, though?

 

[rcw1]

Good morning
It has been reported this morning (23/09/24), Austal won a $US152 million ($220 million) contract with the US Navy to support the delivery of one Columbia-class (CLB) and two Virginia-class (VCS)
submarines.

This contract is separate and in addition to the $US450 million deal signed with General
Dynamics Electric Boat on 16 September.

Kind regards
rcw1

 

[qldfrog]

Good morning
It has been reported this morning (23/09/24), Austal won a $US152 million ($220 million) contract with the US Navy to support the delivery of one Columbia-class (CLB) and two Virginia-class (VCS)
submarines.

This contract is separate and in addition to the $US450 million deal signed with General
Dynamics Electric Boat on 16 September.

Kind regards
rcw1

Looking at the graph, relatively clear insider trading is ripe....or a lot of lucky buyers of course