Austal to sell Henderson asset for $21 million

Austal has agreed to sell its former satellite service base at Henderson to AME Offshore Solutions for $21 million, with the proceeds being used to reduce debt.

AME, a privately owned offshore engineering company, is also currently in negotiation with LandCorp to secure a large waterfront area on which to expand its business.

"We recognise an industry shift from the construction phase to the operational phase and want to ensure we are in position to support the industry's needs," AME's managing director Saul Wende said.

Austal's sale of its service base follows an April 30 announcement that the company was consolidating its service operations from the base to its primary shipbuilding facility nearby.

The company's service team from the base has already been relocated to the primary facility and there will be no jobs lost through its sale.

“Following the consolidation of our two Henderson bases, we concluded that selling the land and infrastructure at the former service base would provide the best outcome for shareholders as we deliver ongoing debt reduction,” Austal chief executive Andrew Bellamy said.

“By transferring our service operations to the Henderson shipbuilding facility we have seen efficiency improvements, greater flexibility and improved knowledge sharing, all of which are having a positive impact on margins.”

Shares in Austal are up 2 cents to 78.5 cents, as of 9.30am, WST.