Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Engineer Monadelphous posts profit fall

Simone Ziaziaris  |  22 Aug 2017Text size  Decrease  Increase  |  
Email to Friend

Page 1 of 1

SYDNEY - [AAP] Engineering services firm Monadelphous Group's (ASX: MND) annual profit has fallen 14 per cent as competition and reduced spending by customers put pressure on its margins.

The company provides construction, maintenance, and industrial services, and made a net profit of $57.6 million in the year to June 30, down from $67 million in the prior year.

It said a fall in activity in the construction market was partially offset by increased maintenance activity.

The maintenance division of the business achieved revenue growth of 7 per cent, on the back of increased activity in the resources and energy sectors.

Monadelphous said prospects for maintenance services continue to be strong, with revenues from oil and gas services expected to grow as new offshore projects are commissioned and production commences.

Monadelphous also said it has substantial capacity to invest in new business opportunities, particularly in the infrastructure sector.

The company said market conditions in the Australian resources and energy sector have stabilised, and it expects an increasing number of resources construction opportunities in the coming years.

Email to Friend
Market News and Views Sign up today and receive our free Morning Note e-newsletter, daily in your inbox.

Monadelphous shares were up 63 cents, or 4.6 per cent, at $14.39 at 1500 AEST.


* Net profit down 14pct to $57.6m

* Revenue down 8.7pct to $1.25bn

* Final dividend down 2 cents at 30 cents, fully franked


AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend