CONTRACTING companies Monadelphous and Macmahon have reaped the benefits of the current boom in resources and infrastructure spending, with both companies doubling half-year net profit.
Macmahon has reported a net profit of $7.6 million for the six months to December, on the back of a 58 per cent jump in turnover to $288 million.
This was helped by a new rail construction contract for Rio Tinto Iron Ore and the extension of a mining contract for BHP Billiton Iron Ore.
Chief executive Nick Bowen was positive about the future, predicting full-year revenue would exceed $600 million, with further revenue growth expected in 2006.
The company expects a full-year profit of $19 million for 2005, a 60 per cent increase on 2004.
Monadelphous managing director Rob Velletri was also upbeat after reporting a net profit of $8 million and announcing a special dividend of 20 cents per share, on top of the normal dividend.
Its engineering construction business has won work on many of the big projects under way in iron ore, nickel and coal in WA and Queensland.
Its industrial services business is also expanding, being selected as the preferred maintenance services provider for Rio Tinto’s newly constructed HIsmelt plant at Kwinana.