The United States Navy has exercised contract options funding the construction of the eighth and ninth Joint High Speed Vessels (JHSVs). The contract is valued at US$321.7 million, taking the total value of JHSV work awarded to Austal (ASB) to approximately US$1.45 billion. The options increase Austal’s total order backlog to nearly $2.2 billion, with shipbuilding work secured for the US operation through to mid-2016 and to mid-2015 for the Australian shipyard.
Austal’s Chief Executive Officer, Andrew Bellamy, said the new JHSV contract options contributed to stability and future growth. “These substantial, multi-year projects provide predictable revenue and workload. That enables us to plan our production approach to deliver high quality, affordable ships in the most efficient way possible and to make and implement medium and long-term strategies,” Mr Bellamy said. “Each new contract award also reflects the US Navy’s confidence in Austal and its products. That provides us with significant marketing leverage with which to grow our international defence business in ships, systems and support,” he added.
Austal is the prime contractor for a US Navy contract for up to 10 additional Littoral Combat Ships with a total value in excess of $3.5 billion to be appropriated over a five year period. The US Navy confirmed contracts for the first two of those 10 ships in December 2010 and March 2011. Additional options are expected to be awarded in the near future. Austal is a global defence prime contractor. The Company designs, constructs and maintains revolutionary platforms such as the Littoral Combat Ship (LCS) and the Joint High Speed Vessel (JHSV) for the United States
Navy, as well as an extensive range of patrol and auxiliary vessels for defence forces and government agencies globally. Austal also designs, installs, integrates and maintains sophisticated communications, radar and command and control systems.