17/02/2009 - 09:57

Monadelphous reports $37m interim profit

17/02/2009 - 09:57

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Monadelphous Group says it will accelerate efforts to expand further into the oil and gas and infrastructure markets amid the slowing minerals sector, as it posts a record interim net profit.

Monadelphous Group says it will accelerate efforts to expand further into the oil and gas and infrastructure markets amid the slowing minerals sector, as it posts a record interim net profit.

The Perth-based engineering firm reported a net profit for the six months to the end of December of $36.8 million, up 14.9 per cent from the previous corresponding period.

Sales revenue was up 22.3 per cent to $562.7 million, on the back of increased levels of activity across all operations, Monadelphous said.

On a division by division basis, Monadelphous' engineering and construction arm generated sales revenue of $324.5 million, up 22.3 per cent.

Sales revenue for the maintenance and industrial division was up 18.6 per cent to $190.2 million, electrical and instrumentation was up 21.5 per cent to $48.9 million and Skystar Airport Services jumped 46.6 per cent to $4.9 million.

Overall, cash flow from operations was $74.5 million, resulting in a net cash position of $129.7 million, up from $45.1 million from the prior corresponding period.

Monadelphous managing director Rob Velletri said while the global financial crisis had rapidly changed market conditions, with a number of customers deferring projects and cutting back capital expenditure, the vast majority of the company's committed projects are proceeding as planned.

"The direct business impact of the global financial environment has to date not been of sufficient significance to revise the second half outlook," he said.

"Monadelphous continues to expect to deliver on its forecast for double digit growth in normalised full year profit after tax," he said.

Mr Velletri added that the company will be continuing efforts to grow its recurring revenue base and in particular its position in the water sector.

Monadelphous declared an interim dividend of 30 cents per share fully franked, up 3.4 per cent.

Shares in Monadelphous climbed 69c to a high of $7.14 before cooling to $7.08 at 12:03 AEDT.

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