Shipbuilder Austal reported full-year revenue of AU$2.03 billion ($1.45 billion) for the financial year ended June 30, up 11 per cent from the previous period.
The group nevertheless recorded an earnings before interest and tax loss of AU$125.2 million and a net loss after tax of AU$53.6 million following a non-cash provision related to US contracts.
The loss was driven by the group's US operations after the US Department of War (Department of Defense) did not agree to accelerated contractual relief. Austal subsequently began formal recovery proceedings through a request for equitable adjustment.
The company also incurred additional costs as several vessel programmes transitioned from follow- to lead-yard production, requiring further design, rectification and commissioning work.
Austal's Australasia segment reported a record earnings before interest and tax of AU$85.3 million on revenue of AU$650.7 million, up 137 per cent from the previous financial year.
The result was supported by defence contracts under the strategic shipbuilding agreement, including awards for 18 landing craft medium and eight landing craft heavy vessels.
The shipbuilder also confirmed it had received an indicative, non-binding proposal from Hanwha Defense USA to acquire its US business entities for an enterprise value of between $1.05 billion and $1.2 billion. Chief Executive Officer Patrick Gregg said Austal had approved due diligence on the proposal to assess its viability.
At June 30, Austal held AU$311.9 million in cash and had AU$435 million in undrawn debt facilities to support its ongoing capital programmes.