Austal in line for more US contracts

Shipbuilder Austal could be in line to win further US defence contracts after a committee included funding for two more combat and high-speed vessels in its fiscal 2010 budget.

Austal announced today that the US House Appropriations Committee has included funding of a fourth Littoral Combat Ship (LCS) and a third Joint High Speed Vessel (JHSV) within its Defence Appropriations Bill.

If passed by the US Senate, it could result in the construction of two more vessels than originally flagged by the US Navy for the 2010 financial year.

Austal is currently the prime contractor for the JHSV program.

Each JHSV is valued at around $200 million, with the potential 10-vessel program valued at around $2 billion.

The Henderson-based company is also the designer and the builder within the General Dynamics consortium, which is one of two consortium's involved in the LCS program.

Austal is currently constructing two 127-metre LCSs at its Alabama shipyard.

"This is a significant vote of confidence for both the LCS and JHSV programs, of which Austal is a key stakeholder," managing director Bob Browning said.

"The US Navy had been expected to split the award of the original three LCS vessels for fiscal year 2010 between the two competing consortiums. Therefore the addition of a fourth LCS increases the chances of being awarded two vessels in FY10."

Shares in Austal were up 18 cents to $2.68 at 15:06 AEST.