BAE Systems PLC (LON:BA.) today issued this statement to provide an update on a number of contracts it has been pursuing in the first half of the year.
The Australian Commonwealth Government has selected BAE Systems as the preferred tenderer to deliver its nine ship Future Frigate programme for the Royal Australian Navy.
The overall announced programme is expected to be in the region of AUD $35bn for the design, build and support of the ships. The Company will soon commence negotiations with Australia’s Department of Defence on the initial design part of the contract, which is expected to be in place by the year end.
Production of the first ship is expected to start in early 2020s in South Australia.
Qatar Typhoon and Hawk
BAE Systems and the Government of the State of Qatar signed a contract in December 2017 for the supply of 24 Typhoon aircraft to the Qatar Emiri Air Force along with a bespoke support and training package. This was subject to financing conditions and receipt by the Company of first payment.
Discussions have progressed and a number of milestones achieved, including the issuing of a Royal Decree relating to Qatar’s financing of the contract.
Financing discussions are in progress and, when successfully concluded, it is anticipated first payment would be received in the third quarter of 2018.
BAE Systems is also pleased to announce that an amendment has been made to the contract to include the supply of nine Hawk Advanced Jet Trainer aircraft to the Qatar Emiri Air Force, along with an initial support package. Delivery of the first Hawk aircraft is expected in 2021.
Amphibious Combat Vehicle
On 19 June BAE Systems and industry teammate Iveco Defence Vehicles were announced as having won the US Marine Corps’ competition for the Amphibious Combat Vehicle 1.1 programme.
With the announcement, the U.S Marine Corps has awarded BAE Systems a US$198m contract for low rate production of 30 Amphibious Combat Vehicles (ACV), with initial options for a total of 204 vehicles which if exercised could take the contract value up to US$1.2bn.
Half year results
BAE Systems will announce its half year financial results for 6 months to the 30 June 2018 on 1 August 2018.