Ship builder Austal has won a $63 million contract to build two Cape class patrol boats for use by Defence.
The fresh contract could help extend its Cape class program, under which the company has so far built eight patrol vessels, which are currently being used by the Australian Border Force.
The two boats under the new order will be delivered in mid-2017 and are to be chartered to the Department of Defence for a minimum term of three years.
Austal was awarded the contract by National Australia Bank, and holds the option of buying back the ships at an agreed price if Defence returns them after three years.
It will also provide in-service support for the vessels.
Earlier this year, the ship builder announced it would shed 300 jobs at its Henderson ship yard south of Perth by early 2016, with the Cape class contract entering its final phase.
Austal shares slid by nearly a third last week as the company downgraded its earnings margin for US shipbuilding due to delays in the progress of its Littoral Combat Ship (LCS) program.
Austal announced its FY 2016 earnings from its US shipyard are expected to be lower than in fiscal 2015.
At 1135 AEDT, Austal shares were trading 3.5 cents or 2.2 per cent lower, at $1.59 each.
