Shares in Australian shipbuilder Austal yesterday rose 2.7% after the company was awarded a contract of nearly $10 million to build four patrol boats for the Armed Forces of Malta, its first European deal.

The four 21.2m inshore patrol craft, co-funded by the EU, will be delivered at the end of this year and will replace some of the older units of the AFM's Maritime Squadron.

Australian media said the boats will have a maximum speed of 26 knots and be capable of supporting 7.62mm and 12.7mm guns.

Austal will also train crews and technical staff and provide technical assistance for two years.

Austal Managing Director Bob Browning said the company had received expressions of interest calls from other countries wanting fast patrol boats. The company has already delivered such vessels to Yemen, Kuwait and Australia and it has signed a deal to design a vessel to match US Navy requirements.

There had been five bids for the AFM tender.

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