Monadelphous profit slides on depreciation, wins Albemarle contract

Company News

by Jessica Amir

Engineering company Monadelphous Group (ASX:MND) has seen its attributable profit slide to $50.6 million, down from FY18’s $71.4 million.

Its bottom line was hit by a rise in its depreciation expense, as part its plant and equipment renewal process. On top of that it was also hit by a drop-in interest earned. MND which works with major companies like BHP (ASX:BHP), Woodside (ASX:WPL) and Oil Search (ASX:OSH)) says it’s also seen a drop in resources construction activity levels.

Its earnings (earnings before interest, tax, depreciation and amortisation (EBITDA)) fell 10.3 per cent on the prior year, falling to $106.8 million.

Revenue was in line with guidance but fell about 9.9 per cent $1.6 billion.

MND declared a final dividend of 23 cents per share, taking the full-year dividend to 48 cents per share (fully franked). That’s a payout ratio of 90 per cent of profit.

The company announced today it won a major construction contract at Albemarle Lithium's new Kemerton lithium hydroxide plant in the south-west region of WA. Since July, the company has now locked in contracts over $400 million for FY2020.

Monadelphous Group (ASX:MND) shares are up 15.5 per cent year-on-year. At the moment, Mpnadelphous Group (ASX:MND) shares are trading 1.6 per cent lower at $17.67.

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.