The Austal Limited (ASX: ASB) share price has moved higher today after the completion of acceptance trials for its newest ship.
At the time of writing, the Austal share price is trading at $3.50, up 1.74%
Acceptance trials complete
Austal has successfully completed acceptance trails in the Gulf of Mexico for littoral combat ship (LCS), USS Mobile. The new naval vessel will be delivered for the United States Navy this month.
The 13th independence-class warship was built in Austal’s USA facility in Mobile, Alabama. Named after the home city of its American operations, it is the third vessel to successfully complete acceptance trials at Austal USA in 2020.
The new combat ship is a high-speed, shallow-draft surface combatant with an aluminium trimaran hull that provides class leading, multi-mission capability. The ship is designed to defeat growing littoral threats and provide access and dominance along coastal waters. In addition, the vessel has operational flexibility to execute surface warfare, mine warfare and anti-submarine warfare missions.
Austal’s USA LCS program is at full rate production, with five ships currently under construction, including Mobile. The future USS Savannah has launched and is preparing for trials. Final assembly is under way for future USS Canberra and USS Santa Barbara. Modules for the future USS Augusta are under construction in the module manufacturing facility.
Austal chief executive officer David Singleton said the delivery of the new warship was an outstanding achievement for the company. He said:
Acceptance trials involve the execution of a number of tests by the Austal USA-led industry team while the vessel is under way; demonstrating to the United States Navy the successful operation of the ship’s major systems and equipment. The trials are the last significant milestone before delivery of the ship.
About the Austal share price
The Austal share price is up 56% since falling to its 52-week low of $2.25 in March. Although materially higher of late, the Austal share price is down almost 7% since the start of the calendar year and 30% from its 52-week high achieved in February.
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Aaron Teboneras 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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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