Monadelphous (ASX:MND) reports first half of FY22

Company News

by Lauren Evans

Monadelphous (ASX:MND) has posted its half year results for the six months ending December 31.

The engineering company’s revenue rose 18 per cent to $995 million, while its profit after tax fell 4.8 per cent to $30 million. The company continued to face labour cost and productivity pressures, with Covid-19 restrictions constraining labour supply and mobility.

Monadelphous secured around $860 million of new contracts and contract extensions throughout the half.

The company said the shortage of skilled labour will continue to be challenging. The increase in Covid-19 case numbers in Western Australia will also provide further challenges in the short-term.

“The resources sector will continue to provide opportunities, with the Australian iron ore industry remaining particularly buoyant,” said managing director Rob Velletr.

"The demand for battery metals is forecast to remain strong and conditions in the energy sector are expected to continue to show an improving trend. The renewable energy market and developments in the hydrogen sector will also provide opportunities over the longer term."

An interim dividend of 24 cents per share was declared, in line with the prior year period.

Shares in Monadelphous (ASX:MND) are trading 8.3 per cent higher at $10.76. 

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