Despite revenues dropping by 14 per cent, the company nevertheless achieved a record EBIT due to streamlined business processes.

The company hopes that their recent growth will continue, with large scale shipbuilding opportunities available in both the US and Australia in the not-so-distant future.

“We have delivered our highest interim EBIT figure, bettering the record result in the prior corresponding period despite the expected decrease in revenue. The earnings result affirmed Austal’s ability to continuously enhance our shipbuilding processes to efficiently achieve key milestones and successfully deliver shipbuilding and sustainment programs across our US and Australasia operations,” Austal chief executive Paddy Gregg said.

Despite the record EBIT, earnings per share dived by 15 per cent but maintained a 4 cent per share interim dividend.

“Our guidance of a minimum EBIT of $107 million for FY22 reflects our confidence in the efficient delivery of our ongoing shipbuilding programs. There is more upside this year and a strong basis for future years if we secure additional orders, a goal we are intent on achieving,” Gregg said.

“The company increased its shipbuilding margins in the USA offsetting a decline in revenue that stemmed predominately from COVID-related impacts on shipbuilding throughput and the maturity of the littoral combat ship (LCS) shipbuilding program.

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“Additionally, with 37 vessels under sustainment contracts by the end of the half; Austal is establishing a sustainable, substantial and geographically diverse revenue base.

“Pleasingly, we’ve retained a strong cash position, even amid enhanced capital expenditure relating to our San Diego expansion and USA steel transition, giving us the optimal platform for growth.”

Austal USA recently delivered its second Independence Class LCS to the US Navy over 2021, with an additional four still under construction.

[Related: Austal delivers littoral combat ship USS Canberra to US Navy]