Babcock signs £115m five-year deal to maintain Australian navy frigates

Babcock International has signed a five-year agreement worth about £115m to maintain frigates for the Australian navy.

The FTSE 100 engineer said Naval Ship Management (NSM), its joint venture with Australia's UGL, would provide critical engineering services for eight Anzac class frigates.

The work comprises planning, scheduling, management and execution of preventive and corrective maintenance on Australia's east and west coasts.

The contract is part of the Australian Warship Asset Management Agreement (Wama) programme, a partnership between NSM, BAE Systems, SAAB and the Australia designed to keep the frigates in service until 2031. Babcock formed the 50:50 joint venture with UGL in 2012 to provide services for the Australian navy.

Archie Bethel, Babcock's chief executive, 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."