Monadelphous Posts Earnings Growth

Monadelphous Group announced a record net profit after tax of $87.1 million for the first half of 2013/2014, a 10.1 per cent increase on the previous corresponding period. Underlying NPAT was up 0.1% to $79.2 million.

Sales revenue remained close to recent record levels – down 1.0 per cent at $1,277 million − as the company continued work on a high volume of construction contracts.

Monadelphous Managing Director Rob Velletri said the company had delivered a solid half year result as the resources market continued to tighten and the unprecedented surge in construction activity moderated.

“We are particularly pleased with our sustained improvement in safety performance with our injury frequency rates reducing almost 40%,” Mr Velletri said.

“In response to the change in market conditions, the company has achieved annualised cost savings of $34 million to date through a program focussed on consolidating and right-sizing the business.”

“We have continued to secure new work with approximately $600 million in new contracts and extensions in the first half and a further $100 million subsequent to the reporting period, with additional awards expected in the coming months.”

“While mining and minerals markets have softened, bidding activity in the oil and gas market remains high and the company is in a strong position to secure new contracts in both upstream and downstream LNG developments.”

As previously reported, revenue levels have moderated, and the company expects a decline in sales for the 2014 full year of approximately 10 per cent.