ENGINEERING and services company Monadelphous is looking for further growth following its recent announcement of a record interim net profit.
ENGINEERING and services company Monadelphous is looking for further growth following its recent announcement of a record interim net profit.
Not content with several major revenue-producing contracts in the second half of the past calendar year, Monadelphous is optimistic about its chances for at least a further two large contracts within the near future.
The Applecross-based group is also keen on the outlook for the next two or three years, with several large resources projects likely to commence development.
“The name of the game is being able to capitalise on the opportunities,” Monadelphous group general manager and director Rob Viletri said.
This includes growing the other side of the business – maintenance and industrial services – to supplement the income from the engineering and construction divisions.
Monadelphous offers ground-handling services to airlines at Perth’s domestic and international airports, and at regional airports including Geraldton, but Mr Viletri said the company was keen to extend these types of services to marine ports.
The ASX-listed company was also looking at supplying maintenance services to the utilities sector.
Monadelphous is well placed to grow its general maintenance services to the oil and gas industry, already supplying such services to ChevronTexaco on Barrow and Thevenard Islands, offshore from its Darwin office, and for the North West Shelf LNG venture’s expansion program.
Its engineering and construction divisions completed deconstruction works at Hismelt’s Kwinana steel project in the latter part of last year, and picked up three BHP Billiton (iron ore) construction contracts in the north-west.
But the company could still grow in the large projects area, Mr Veletri said, and was looking to be part of large-scale operations in the goldfields and to take on further work in Kwinana.
ChevronTexaco and BHP Billiton are also planning further large ventures, on Barrow and near Ravensthorpe respectively.
And while Monadelphous was already involved in three large projects in the Northern Territory, Queensland and New South Wales, the company was keen
to expand its influence much further
in eastern Australia, Mr Veletri said.
Monadelphous reported an after-tax profit up 44 per cent for the six months to December 31 2002, with earnings per share up 43 per cent, at 17.6 cents.
The company will pay an eight-cent fully franked dividend next month.
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