Shipbuilder Austal has upgraded its full-year earnings guidance, saying in part that COVID-19 had a more limited impact in April and May than anticipated.
The Perth-based company said it expected to bring in $2 billion in revenue and at least $125 million in earnings before interest and tax, up from its previous forecast of $1.9 billion and $110 million.
“Austal’s continued strong performance across our shipyards in the USA, Australia, Philippines and Vietnam during the COVID-19 pandemic has provided confidence to increase the Company’s FY2020 earnings guidance at this time,” chief executive David Singleton said.
As well as the limited impact of COVID-19, Austal noted it had been awarded a $324 million contract to build six patrol boats for the Australian navy, it has been awarded research and development tax credits in the United States, and the strength of the US dollar against the Aussie.
At 1107 AEDT, Austal shares were up 10.2 per cent to a one-month high of $3.34.