The Austal Ltd (ASX: ASB) share price is on watch this morning after the Aussie ship builder delivered the fourth Guardian Class Patrol Boat to the Australian Department of Defence.
What did Austal announce on Friday?
In its after-market announcement on Friday, Austal said the latest patrol vessel was gifted to the Samoan Government by the Australian Government during a handover ceremony at its Henderson shipyard in South Australia.
The company is contracted to deliver 21 of the Guardian Class vessels as part of Australia's Pacific Maritime Security Program, with the latest boat delivered on-time and on-budget.
What's the story behind the contract?
In May 2016, the Australian Government awarded Austal the contract to deliver the Guardian Class vessels as part of its Pacific Patrol Boat Replacement Program.
In April 2018, the contract was expanded out to a total of 21 vessels, which was valued at more than $335 million.
How has the Austal share price performed this year?
Prior to the market open, the Austal share price was trading at $3.77 per share having climbed 2.45% higher during Friday's trade.
Austal is Australia's only ASX-listed shipbuilder and its shares have been strong performers within the S&P/ASX 200 (INDEXASX: XJO) index in 2019, with the share price nearly doubling its $1.91 per share valuation at the start of the year.
The Austal share price rocketed 15% higher in mid-June following an increase in its full-year results earnings guidance.
Austal said it expects to report earnings before interest and tax (EBIT) of $92 million from expected revenue of $1.8 billion to $1.9 billion for the year.
The Aussie shipbuilder also reported an anticipated 14% increase in EBIT during FY20, up to $105 million, ahead of its 30 August FY19 results release.
Foolish takeaway
Austal has been going from strength to strength so far this year, and the phenomenal share price growth has reflected this for investors.
Today's announcement, while not a game-changer for the group, is a positive sign that its Guardian Class Patrol Boat program remains on-time and on-budget, albeit with a further 17 vessels to be delivered before 2023.
