The deal, which kicks off this month, will see the Babcock’s Naval Ship Management (NSM) joint venture deliver engineering services to sustain the eight ANZAC Class frigates operated by the Australian Navy.
NSM will take care of the planning, scheduling, management and preventative and corrective maintenance for the ANZAC fleet and its support system on the east and west coast of Australia.
The contract is part of the long-term Australian Warship Asset Management Agreement which is designed to keep the warships in service until at least 2031.
“I am delighted that we have successfully achieved the next stage of the contract to look after Australia's ANZAC fleet,” said chief executive Archie Bethel.
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“Babcock has a long and successful history of working with the Australian Navy and we look forward to continuing that relationship over the next 14 years.”
Shares opened broadly flat at 717.5p on Wednesday.