The Austal Limited (ASX: ASB) share price is on the move on Monday morning.
At the time of writing, the shipbuilder’s shares are up 6.5% to $2.53.
Why is the Austal share price on the rise?
Investors have been buying Austal shares today following the release of an announcement.
According to the release, Austal’s Philippines business has successfully delivered Hull 419 to Fjord Line of Norway.
The 109 metre high-speed catamaran vehicle-passenger ferry, named FSTR, is the largest aluminium vessel ever constructed in the Philippines. It is also currently the largest ferry (by volume) to be constructed by Austal, at any of the company’s shipyards worldwide.
FSTR is capable of transporting 1,200 passengers at up to 40 knots and features Austal’s largest ever vehicle-carrying capacity constructed to date. It has a beam of 30.5 metres enabling 404 cars to be carried across two decks.
Furthermore, the ship features several key design innovations that enhance operating performance and passenger comfort. This includes a new, optimised hull form that will minimise fuel consumption and wake wash when operating on the Skagerrak Sea between Hirtshals, Denmark and Kristiansand, Norway.
Austal’s Chief Executive Officer, Paddy Gregg, was pleased with the delivery, especially given the tough operating conditions it has been facing because of COVID-19.
He said: “It’s impressive to see a large high speed ferry like this delivered in the best of times, but for the team to deliver this new vessel during a global pandemic is simply outstanding. The Austal Philippines team has clearly demonstrated its ability to deliver multiple, complex projects under challenging circumstances, while maintaining a safe working environment.”
What’s next?
The delivery of FSTR was just the first of three large high-speed ferries to be constructed at the company’s newly expanded shipyard.
Austal Philippines President, Wayne Murray, commented: “With the delivery of FSTR, we’re now preparing for the launch of Hull 395, Bañaderos Express; a 118 metre trimaran ferry under construction for Fred. Olsen Express of the Canary Islands. Following closely behind that, we have the 115 metre Express 5 under construction for Molslinjen of Denmark.”
Despite today’s gain, the Austal share price is down 27% over the last 12 months.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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