Monadelphous has expanded its recruitment efforts overseas as the company continues to grapple with its “biggest challenge” of industry-wide staff shortages.
Monadelphous has expanded its recruitment efforts overseas as the company continues to grapple with its “biggest challenge” of industry-wide staff shortages.
In its half-year report on the ASX, the Perth-based company said it had bolstered its international skilled worker search while also focusing on staff retention.
It undertook a company-wide employee survey to tailor staff retention and attraction strategies to mitigate the effects of labour shortfalls.
“The shortage of skilled labour continues to be the most significant challenge for the company’s operations,” Monadelphous said.
“Heightening supply chain risks and an escalating cost environment are also posing challenges.”
In its half-year report, Monadelphous recorded an expected 10.5 per cent drop in revenue to $953 million in the six months to December 31.
Its engineering and construction division recorded lower levels of activity due to significant construction projects being completed in the previous financial year.
However, its maintenance and industrial services division achieved a record half year revenue of $676.8 million, up 13.5 per cent from the previous period.
Monadelphous’ earnings before interest, tax, depreciation, and amortisation (EBITDA) were up 6.11 per cent to $58.2 million.
But its net profit after tax was down 3.1 per cent to $29.1 million.
The company declared an interim dividend of 24 cents per share fully franked.
Managing director Zoran Bebic said the outlook for the company’s core markets continued to be positive.
“The resources and energy sectors, both in Australia and overseas, continue to provide a significant number of prospects for Monadelphous across a broad range of commodities, including iron ore, battery metals and oil and gas,” he said.
“The shortage of skilled labour, however, remains our biggest challenge, especially in Australia.”
Since the beginning of the financial year, the company secured $945 million worth of new contracts or contract extensions.
About $540 million worth of contract work was awarded within the iron ore sector from mining giants such as Rio Tinto, BHP and Fortescue Metals Group.
Monadelphous was engaged to provide construction services at FMG’s Iron Bridge Magnetite project in the Pilbara.
The company’s cash balance came in at $190 million in the period to December 31.
Last month, former company chairman John Rubino passed away at age 77 just three months after stepping down from the board.
Mr Rubino led the ASX-listed company for more than 30 years, providing stable leadership during a period of sustained success.
Monadelphous shares were down 7.92 per cent to trade at $12.86 at 2.24pm AEDT.
