Shares in BAE Systems (LON:BA) have jumped higher in London in today’s session, as the company confirmed that its £5-billion contract with Qatar has become effective. The news follows reports that time was running out on the British defence giant to confirm the sale, first unveiled in December last year.
As of 14:19 BST, BAE Systems’ share price had added 1.24 percent to 635.40p. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.15 percent lower at 7,290.90 points.
BAE Systems confirms Qatar deal
BAE Systems said in a statement this afternoon that its £5-billion contract with Qatar for Typhoon and Hawk aircraft had become effective with receipt of the first payment today. The contract was first announced in December last year and included the supply of 24 Typhoon aircraft to the Qatar Emiri Air Force along with a bespoke support and training package. It was amended in June to include the supply of nine Hawk Advanced Jet Trainer aircraft along with an initial support package.
The British defence contractor said that deliveries of the first Typhoon and Hawk aircraft are expected to commence in 2022.
Boost for British defence giant
The news marks a boost for BAE Systems which announced 2,000 of job cuts last year. The move was prompted by a lack of orders for its Eurofighter Typhoon jets, with a large order expected from Saudi Arabia failing to materialise.
The Telegraph had previously reported that should BAE fail to nail down the final terms of the Qatar contract by the end of the quarter, it could have had to issue a regulatory statement explaining the delay.