The French (DCNS) made version of the French FREMM (multi-purpose) Frigate is known as the Aquitaine class. Delivery of one to Egypt in 2015 and the Languedoc to the French Navy, in March 2016, helped DCNS return to profit in 2015. (Image Courtesy NavalAnalyses.blogspot.com. See larger image here)
Thales, with a 35% stake in DCNS, is delighted DCNS has won the Australian SEA 1000 Future submarine order. This will boost DCNS and Thales revenue.
Defense News, April 29, 2016 carried information: "France’s share of the prospective deal is €17 billion (US $19.5 billion), according to sources close to defense minister Jean-Yves Le Drian, weekly Le Point reported, while Reuters reported some €8 billion (US $9.2 billion) for DCNS. DCNS chairman Hervé Guillou welcomed the support from the Direction Générale de l'Armement procurement office, Navy chief of staff Adm. Bernard Rogel, Thales, Sagem, and Schneider Electric, a French energy company with a significant business presence in Australia.…[As well as Thales' gaining a share of DCNS' revenue] Thales' share of the Australian program is expected to be some €1 billion (US $1.2 billion), with €100 million ($115 million) per sub based on the sale of sonar systems, electronic warfare and periscopes, a Thales executive said."
The way Thales may benefit may be from its local subsidiary supplying sonars for the (Lockheed Martin versus Raytheon) Combat System for Shortfin. The Combat System Integration (CSI) competition may be decided in July-August 2016.
DCNS delivered a FREMM frigate of the Aquitaine class to Egypt in 2015 and the Languedoc to the French Navy in early 2016. DCNS is also overhauling the nuclear carrier Charles de Gaulle in Toulon. Later in 2016 DCNS is delivering the two Mistral helicopter carriers to Egypt. The Mistrals were previously sold to Russia but blocked by the western arms embargo. The Mistrals will still use Russian communications equipment and Ka-52 attack helicopters.
All this activity and construction of the Barracuda SSNs and work on the Triomphant SSBNs helped generate a 2015 profit for DCNS. DCNS reported a net profit for 2015 of €58.4 million after a loss in 2014 of €347 million. This was on 2015 sales of €3.03 billion compared to 2014 sales of €3.07 billion.
If DCNS and Australia sign a Shortfin design contract in 2016 profits may even be higher for DCNS.
DCNS sale of 2 Mistrals (previously intended for Russia) to Egypt helped lift DCNS into profit in 2015. The Egyption Mistrals will still use Russian communications equipment and Ka-52 attack helicopters.