Austal wins more US Navy work

Perth-based shipbuilder Austal’s United States-based operation has won a $1.5 million maintenance services contract with the US Navy.

Austal announced today it had been awarded a subcontract by BAE Systems to provide structural maintenance for the US Navy’s Sea Fighter research vessel, which is used for advanced technology demonstrations.

Chief executive Andrew Bellamy said the contract was in line with the company’s strategy to expand its presence in the defence vessel support sector.

“This contract is further recognition from the defence community that our core skills add value in the in-service support phase,” Mr Bellamy said in a statement.

“It shows we can successfully grow our international support business, and leverage our defence contracting credentials beyond new ship construction, in line with or strategy.”

The contract is expected to extend into the first quarter of next year.

At 12:17PM (WST) Austal’s stock was down nearly 3 per cent, to $2.28.