Engineering and contracting group Monadelphous has won two new contracts worth a combined $180 million with Rio Tinto and Chevron, a week after announcing it would exceed its initial profit guidance for the first half of financial 2012.
For Rio Tinto, Monadelphous will construct and install a 10 gigalitre per year potable water supply system, stretching from the Bungaroo Valley to the West Pilbara Supply Scheme at Millstream.
The system will include a bore field and 87 kilometres of transfer pipeline and a pump station.
Under the second contract, for Chevron, Monadelphous will prepare and construct a carbon dioxide injection pipeline and well sites for the Gorgon liquefied natural gas project on Barrow Island.
“These contracts support our objective of sustainable growth through the continued expansion of our infrastructure business and they build on our long-term relationships with blue chip customers,” Monadelphous managing director Rob Velletri said.
Mr Velletri said the latest contracts take the total value of new work secured by the company in financial 2012 to more than $1.5 billion.
Last week the company provided a market update, saying it now expected revenue to grow by 24 per cent on the previous year, up from its initial guidance of 15 per cent.
Monadelphous estimated net profit after tax to come in between $55 million and $58 million, an increase of between 21 per cent and 27 per cent on the previous half year.
“Continued strong demand from customers across all our markets and higher than expected levels of contract activity has resulted in this strong growth,” Mr Velletri said last week.
At close of trade today, Monadelphous stocks had slipped slightly, to trade at $22.50.