Engineering group Monadelphous has shrugged off talk of a slowdown in the resources sector after reporting its eleventh consecutive year of earnings growth.
The Perth-based company lodged a record net profit of $137.3 million for the year ended June 30, up 44.5 per cent on the previous financial year.
The profit was driven by record sales revenue of $1.9 billion, up 31.4 per cent on FY2011.
The result also included a one-off after tax gain of $11.4 million from Monadelphous’s sale of Norfolk Group shares.
Managing director Rob Velletri said the company had a significant number of existing and new projects under way, with more starting to ramp up from around $2 billion of work secured in 2011/12.
“What Monadelphous is seeing is a strong pipeline of engineering construction opportunities, reflecting the numerous large-scale LNG, iron ore and coal projects in the early phases of execution,” Mr Velletri said.
“While there has been some recent market commentary about potential delays and uncertainty of commitments to future new projects, the current crop of approved projects, particularly in the LNG sector, will drive strong demand for the next few years.”
At 1:00PM, WST, Monadelphous shares were up 8.7 per cent, trading at $23.60.
