Austal nabs US Navy contract

The ASX-listed shipbuilder has won a fresh contract to design and build two vessels for the US Navy.

The deal is an extension of the Expeditionary Fast Transport agreement sealed in 2008.

ASX-listed shipbuilder Austal has won a $434 million contract to design and construct two vessels for the US Navy.

The deal is an extension of the Expeditionary Fast Transport (EPF) agreement sealed in 2008, with the two new vessels bringing the total it will supply through the scheme to 12.

“This new order for a further two EPF reflect the US Navy’s continued confidence and investment in a proven product,” chief executive David Singleton said.

“The EPF is a unique vessel that is re-defining naval sealift capability and exceeding expectations in various military and civilian operations around the world.”

Austal has so far delivered seven EPF vessels to the US Navy.

The group’s shares were trading down 4.5 per cent ahead of the deal but have since recovered marginally to be off 1.9 per cent at $1.525 by 1.55pm (AEST).