{"id":6193,"date":"2026-05-13T07:00:28","date_gmt":"2026-05-13T07:00:28","guid":{"rendered":"https:\/\/stock999.top\/?p=6193"},"modified":"2026-05-13T07:00:28","modified_gmt":"2026-05-13T07:00:28","slug":"frigate-costs-rise-after-design-changes-revealed-daily-business","status":"publish","type":"post","link":"https:\/\/stock999.top\/?p=6193","title":{"rendered":"Frigate costs rise after design changes revealed \u2013 Daily Business"},"content":{"rendered":"<p>            <\/p>\n<p>Babcock has seen costs rise on new frigates<\/p>\n<p class=\"has-medium-font-size\">Babcock has revealed a \u00a3140 million cost over-run on its Royal Navy frigate building contract as a result of design changes.<\/p>\n<p class=\"has-medium-font-size\">These modifications are late in build programme and will have knock on effects on the five-ship programme under way at Rosyth.<\/p>\n<p class=\"has-medium-font-size\">The company floated the first two ships during the financial year ending 31 March, laid the keel of ship three, and began construction of the fourth vessel.<\/p>\n<p class=\"has-medium-font-size\">Babcock said the number of rework events was not entirely unexpected. However, as work on the lead ship progresses, rework requirements during outfitting have proven \u201cmore complex and more costly than anticipated\u201d as they occurred in the later stages of completion.<\/p>\n<p>Five Type 31 frigates are under construction<\/p>\n<p class=\"has-medium-font-size\">The company has completed an \u201cengineering maturity review\u201d and updated its estimates to complete the programme, incorporating higher production costs and an increased risk contingency. <\/p>\n<p class=\"has-medium-font-size\">About \u00a3100m of the charge will be recognised as a \u201crevenue reversal\u201d in FY26, with the remainder added to the contract loss provision. Cash costs will be spread across the remainder of the programme.<\/p>\n<p class=\"has-medium-font-size\">The update came in a post-close trading update which showed underlying operating profit increased 19% at constant foreign exchange rates to \u00a3433 million, excluding the Type 31 charge. Including the charge, underlying operating profit was \u00a3293m.<\/p>\n<p>           \t            #Frigate #costs #rise #design #revealed #Daily #Business<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Babcock has seen costs rise on new frigates Babcock has revealed a \u00a3140 million cost&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7],"tags":[11875,272,1364,306,2706,11877,190,70,11876],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/6193"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6193"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/6193\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}