Australian shipbuilder Austal secures $516 mln contract from US navy (updated)

Austal

31/05/2024 07:52

(Updates with details about contract)
       May 31 (Reuters) - Austal Ltd  ASB.AX  has secured a
$516 million contract to construct the lead ship of the United
States Navy's ocean surveillance program, T-AGOS 25, the
Australian defence shipbuilder said in an exchange filing on
Friday.
    The contract, announced on May 19, was originally for $113.9
million for a detailed design of the Auxiliary General Ocean
Surveillance Ship T-AGOS 25 Class for the United States Navy,
with options to design and construct up to seven such ships.
    On Friday, the United States Navy exercised its option to
modify the contract to construct a ship, allowing Austal to buy
the materials required to continue building the surveillance
vessel.
    If all options under the contract are exercised, the
cumulative value of the order amounts to $3.20 billion, Austal
added.
    T-AGOS ships, operated by the United States Military Sealift
Command (MSC), support the antisubmarine warfare (ASW) mission
of the commanders of the Atlantic and Pacific Fleets, the
shipbuilder said in its statement.


 (Reporting by Sameer Manekar in Bengaluru; Editing by Sohini
Goswami and Janane Venkatraman)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))