Austal Awarded Contract for Two High Speed Ferries

Austal Limited (Austal) (ASX:ASB) is pleased to announce it has been awarded a contract from the Abu Dhabi National Oil Company (ADNOC) to design and construct two 45 metre high speed catamaran ferries.

The contract is valued at approximately $30 million.

The high speed ferries will be designed and constructed at Austal’s Philippines shipyard. Construction will commence in the current quarter, with both vessels expected to be delivered in 2015.

The high speed ferries will be used to transfer cargo, personnel, and equipment to ADNOC offshore installations. ADNOC is one of the world’s leading oil and gas companies, with substantial business interests in upstream and downstream activities, and steadily growing its fleet of offshore support vessels.

Austal Chief Executive Officer Andrew Bellamy said it was pleasing to win the contract, which was in line with Austal’s strategy of targeting commercial vessel opportunities in the oil and gas market.

“Given the subdued commercial ferry market, we have repositioned our commercial business to be more competitive and target sectors that will deliver value from the depth of knowledge Austal has in designing and constructing these vessels,” Mr Bellamy said.

“Expanding into the Philippines was a key step in increasing competitiveness and we have enhanced this through the ongoing transfer of technology to the shipyard.

“We also identified new and emerging markets such the Middle East and the energy sector as key targets to drive value from the shipyard.

“This contract is very pleasing as it demonstrates Austal’s ability to use our deep know-how and competitive position to win work in this target market.

“It also illustrates the confidence that ADNOC has in Austal and our shipbuilding facilities in the Philippines, which has been earned through a competitive tendering process and backed up by several successful recent deliveries from Austal’s Philippines shipyard.”

Austal delivered an 80 metre commercial ferry to a repeat customer in December 2013 that was designed and constructed at its Philippines shipyard.