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RAN signs Cape Class patrol boat lease extension

The Royal Australian Navy has advised Austal that the RAN has signed a two-year lease extension with the National Australia Bank for its Cape Class patrol boats (CCPB), Cape Fourcroy and Cape Inscription.

The lease extends the charter from the initial three-year minimum term to five years, with Austal delivering the vessel's ongoing in-service support and sustainment.

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The charter and sustainment of Cape Fourcroy has been extended until April 2022, and Cape Inscription to May 2022, with the extension reducing the total residual value for the two vessels from $42 million to $24.3 million.

This means the CCPB 9 and 10 related debt on the balance sheet has become non-current again and will progressively reduce from $48.8 million at 30 June 2019 to $24.3 million in late FY2022 at the maturity of the extended contract period.

Austal CEO David Singleton said Austal was proud of the capability the CCPBs provided to the RAN and the Australian Border Force (ABF).

“This proven capability has also attracted attention from a number of export markets, including the Trinidad and Tobago Coast Guard, which recently contracted Austal to deliver two of the vessels,” Singleton said.

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“The lease extension also includes a sustainment package – to be delivered by Austal and delivering revenue to Austal – to ensure vessels are available to meet the operational demands placed upon them.”

Austal originally designed and built 10 CCPBs for the RAN and the ABF, with the 58-metre all aluminium monohull patrol boats specifically designed and manufactured to combat the "full range of maritime security threats".

The vessels have a 4,000 nautical mile range and a 28-day patrol cycle with a crew of up to 22 people, and is fitted with two high-speed rigid hull inflatable boats used for intercepting other vessels.

Austal recently announced that Trinidad and Tobago has engaged the company on a $126 million contract to construct and export two CCPBs.

RAN signs Cape Class patrol boat lease extension
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