Babcock International Group PLC

Capital/Financing Update • Jan 3, 2018

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RNS Number : 7707A

Babcock International Group PLC

03 January 2018

3 January 2018

Babcock International Group PLC (Babcock or the Group)

Babcock signs AU$200 million agreement with Australian Navy

Leading engineering company Babcock's 50/50 joint venture with UGL has been awarded a further five year agreement, worth around £115 million (AU$200 million) to the Group, to provide  maintenance support services for the Australian Navy.

The programme agreement, starting in January 2018, will see the Naval Ship Management (NSM) joint venture deliver critical engineering services to sustain eight ANZAC Class Frigates as part of the long-term Australian Warship Asset Management Agreement (WAMA).

NSM will undertake the planning, scheduling, management and execution of preventative and corrective maintenance for the ANZAC fleet and its system support facilities on the East and West Coast of Australia. The WAMA programme, a strategic partnership between NSM, BAE Systems, SAAB and the Commonwealth of Australia, is designed to ensure that the Frigates stay in service until at least 2031. NSM is responsible for the delivery of maintenance, including provision of an integrated schedule and elements of logistics supply.

Babcock CEO Archie Bethel said:

"I am delighted that we have successfully achieved the next stage of the contract to look after Australia's ANZAC fleet. 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."

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Enquiries

Babcock International Group PLC	020 7355 5300
Franco Martinelli
Kate Hill
FTI Consulting	020 3727 1340
Andrew Lorenz
Nick Hasell

This information is provided by RNS

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