Austal (ASX:ASB) subsidiary awarded U.S. Navy contract

• Austal’s (ASB) subsidiary, Austal USA, has been awarded a US$235 million (approximately A$295 million) contract by the United States Navy for the design and construction of a vessel
• Under the contract, Austal USA is set to design and construct the fifteenth expeditionary fast transport (EPF) vessel
• Austal is a shipbuilder and defence prime contractor, specialising in designing constructing and sustaining some of the world’s most advanced commercial and defence vessels
• The EPF vessel is a 103 metre, high speed aluminium catamaran designed to provide a fast, high-payload transport capability to combatant commanders around the world for humanitarian aid and disaster relief
• On top of the EPF program, Austal has been contracted to deliver nineteen independence-class Littoral Combat Ships (LCS) for the U.S. Navy
• Austal is up 3.04 per cent, trading at $2.37
  

Austal’s (ASB) subsidiary, Austal USA, has been awarded a US$235 million (approximately A$295 million) contract by the United States Navy for the design and construction of a vessel.   

Under the contract, Austal USA is set to design and construct the fifteenth expeditionary fast transport (EPF) vessel for the Navy — the twelfth vessel of its type the company has delivered since 2012.

Austal is a shipbuilder and defence prime contractor, specialising in designing, constructing and sustaining some of the world’s most advanced commercial and defence vessels.

Since the first contract in 2012, the vessels have been delivered on schedule and under budget from the company’s Alabama shipyard.

The Spearhead-class EPF vessel is a 103 metre, high speed aluminium catamaran with a large, 1800-square-metre cargo deck, helicopter deck and seating for more than 300 troops. It is designed to provide a fast, high-payload transport capability to combatant commanders around the world for humanitarian aid and disaster relief.

The vessel is also equipped to support special operations, command and control, and primary medical operations.

Austal CEO Paddy Gregg said the new contract demonstrated the confidence the U.S. Navy has in Austal’s EPF platform.

“The EPF has become a real success story, delivering a fast, flexible and versatile capability to the US Navy. The EPF has made a real difference to military operations and other humanitarian and disaster relief missions over many years now, and this additional vessel contract reflects the continuing confidence in the unique high-speed platform,” he said.

“This latest EPF will expand the medical facilities available on-board, further enhancing the proven operational capabilities of the ship, which has been used for various medical missions in the Pacific, South East Asia and Western Africa.”

On top of the EPF program, Austal has been contracted to deliver nineteen independence-class Littoral Combat Ships for the U.S. Navy. Thirteen of these have already been delivered, five ships are in various stages of construction and one has yet to begin construction.  

Austal is starting the week up 3.04 per cent, trading at $2.37 at 9:34 am AEDT.