Perth-based engineering group Monadelphous reported an 11 percent rise in net profit to $52.2 million in FY22.
Earnings before interest, taxes, depreciation and amortization were $111.2 million, an increase of 2.3% from the prior corresponding period, resulting in an EBITDA margin percentage for the period of 5.76%.
Revenue for the year was 1,930 million, 1.2% less than the previous year. Statutory revenue, which excludes Monadelphous’s share of joint venture revenue, was $1.81 billion, up 3.2 percent from the prior year.
Monadelphous said the result reflected “strong demand for maintenance services in the resources and energy sectors, as clients maintained high production levels, taking advantage of favorable raw material prices.”
The company will pay an annual dividend of 49¢, up from 45¢ paid at this time last year.
Monadelphous said the outlook for Australia’s iron ore industry is expected to remain optimistic, which will boost demand for its services.
However, he said a shortage of skilled labor will be a major challenge for operations, especially in Australia.
“Demand for our maintenance services is expected to remain strong and resource developments in iron ore and oil and gas, as well as the significant portfolio of investments in metals for batteries and renewable energy, will provide a solid volume of prospects for growth.” construction in the next few years,” Monadelphous said. managing director Rob Velletri said.
“However, a highly competitive job market will remain the main challenge.”
Monadelphous said it would “evaluate acquisition opportunities”, supported by its strong balance sheet, with cash of $183.3 million.
For FY23, the company expects revenue to depend on the timing of awards and the start of “a new wave of construction projects currently in the bidding phase,” and will likely drift to the second half.
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