One of Australia’s leading engineering groups, Monadelphous [ASX:MND], has signed off on new and existing contracts worth approximately $125 million.
For the financial year to date, the company now has $1.1 billion in total contracts.
These latest agreements were struck with Albemarle Lithium, iron ore giants Rio Tinto and BHP, as well as with Woodside for its Pluto Train 2 project.
MND was flat in the share market by Wednesday afternoon, trading for $11.54 a share.
The stock has slipped by nearly 14% so far in 2023 and more than 9% in the past month. This leaves it clinging to a gain in the past full year, just shy of 5%:
Monadelphous boosts contracts by $125 million
The engineering group was excited to announce it has not only extended, but also secured, new contracts with lithium, iron ore, and oil and gas corporations — which are said to amount to around $125 million.
These contracts include two five-year agreements with major players in the lithium sector Albemarle Lithium for assisting its mining operations in Kemerton, WA and sustaining its capital projects. Both of these newer contracts also have two-year extension options, and according to Monadelphous, these will help build on the existing relationship between them, which was established through prior works involving the construction of the Kemerton project.
Monadelphous has also been awarded several contracts with mining giant Rio Tinto for its iron ore operations in the Pilbara region of WA. These agreements include the replacement of an overland conveyor belt at the Western Turner Syncline mine and a two-year extension to the marine infrastructure maintenance contract, which covers services for projects at Rio’s Cape Lambert and Dampier ports.
Monadelphous has been very busy making deals, as it also secured a contract with fellow iron ore giant BHP.
BHP’s WA Iron Ore Site Engineering Panel Agreement will enable it to undertake bridge-bearing replacements in the Port Hedland region of Western Australia.
Lastly, Monadelphous has also struck a deal through its heavy lifting services joint venture with Fagioli — named Alevro.
Alevro has teamed up with Bechtel to arrange haulage and lifting services for Woodside’s Pluto Train 2 project in Karratha, Western Australia.
Zoran Bebic, Monadelphous’ Managing Director, expressed his gratification in building on existing relationships with Albemarle, Rio Tinto, BHP, and Woodside. He commented:
‘Since the beginning of the financial year we have secured approximately $1.1 billion in new contracts and contract extensions, highlighting the strength of our customer relationships and our reputation for reliable delivery.’
Last month Monadelphous reported revenue of $953 million and NPAT of $29.1 million for 1H FY2023.
By then, it had secured around $945 million of new contracts and extensions and celebrated an improved EBITDA margin with an interim dividend of 24 cents.
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For The Daily Reckoning
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