Austal wins $8.5m contract extension

Austal’s littoral combat ship program with the US Navy has earned the shipbuilder an $8.5 million contract extension to provide studies and review efforts to reduce costs.

Austal will provide engineering and design services, as well as affordability efforts to reduce littoral combat ship acquisition and lifecycle costs, on top of an $18.8 million contract extension it was awarded in December last year.

Work will be undertaken in Mobile, Alabama and Pittsfield, Massachusetts, with completion expected by March next year.

“Fiscal 2014 shipbuilding and conversion (Navy) funding in the amount of $US2 million ($2.6 million) will be obligated at time of award and will not expire at the end of the current fiscal year,” Austal said in a statement.

Last month, Austal reported a 208 per cent rise in profit to $28.9 million for the six months to December, and declared its first dividend since 2011.

Austal shares were 1.8 per cent higher at $1.67 per share at 9:30am.