Austal USA Awarded a US$53.5 Million Procurement Contract

Austal Limited (Austal) (ASX:ASB) is pleased to announce it has been awarded a US$53.5 million contract to procure long-lead time materials for the eleventh Expeditionary Fast Transport (EPF 11), formerly known as the Joint High Speed Vessel, for the U.S. Navy.

EPF's 1, 2 and 4 at Austal USA

Chief Executive Officer Andrew Bellamy said the contract award was an important step on the critical path to a new shipbuilding contract.

“It is timely that the U.S. Navy has directed Austal USA to move forward with the procurement of the long lead items for EPF 11. We can now anticipate finalisation of a shipbuilding contract for EPF 11 in the coming months.”

“Costs  incurred  will  be  reimbursed  but  no  profit  will  be  recognised  prior  to  execution  of  the shipbuilding contract,” Mr Bellamy said.

The  award  covers  materials  including  main  propulsion  engines,  generators,  water jets, main reduction gears and other long-lead time items.

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About Austal

Austal is a global defence prime contractor and a designer and manufacturer of defence and commercial ships. For more than 25 years Austal has been a leader in the design, construction and maintenance of revolutionary ships for Governments, Navies and Ferry operators around the world. More than 250 vessels have been delivered in that time.

Ships

Defence vessels designed and built by Austal include multi-mission combatants, such as the Littoral Combat Ship (LCS) for the United States Navy and military high speed vessels for transport and humanitarian relief, such as the Expeditionary Fast Transports (EPF) formerly known as the Joint High Speed Vessel (JHSV) for the United States Navy and High Speed Support Vessel (HSSV) for the Royal Navy of Oman. Austal also designs, constructs, integrates and maintains an extensive range of patrol and auxiliary vessels for government agencies globally, including the Cape Class Patrol Boat Program for Australian Border Force (formerly Customs and Border Protection). Defence vessels are designed and constructed in Mobile, Alabama and in Henderson, Western Australia.

Austal has been at the forefront of the high speed ferry market since the early days of the industry. Our market leading designs of high performance aluminium vessels have long been at the heart of Austal’s research and development. Today, commercial ship construction is centred on our shipyard in Balamban, Philippines.

Systems

Austal has expertise in integrating complex systems into its ships, including ride control, ship management, and communication, sensors and weapon systems.

Support

Austal provides a wide range of support services, including through life support, integrated logistics support, vessel sustainment and systems support. These services are delivered through our global support network in the USA, Australia, Asia and the Middle East together with partner shipyards worldwide.