Monadelphous confident in future contract security

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The company stated it was expecting a continued stream of contracts from the resources sector this year.

“While the global economic outlook in the wake of COVID-19 remains uncertain, the resources sector is expected to provide a steady flow of opportunities for Monadelphous over coming years,” Monadelphous stated.

Monadelphous also anticipated high local capital and operating expenditure for iron ore would drive up the company’s engineering and construction services.

The engineering company reported $947.8 million in revenue for the first half of the 2021 financial year off the back of increased iron ore sector activity.

The company has also locked in $360 million in new contracts and contract extensions since the start of the 2021 financial year, including $175 million in its engineering construction division.

Monadelphous’ engineering division has continued works at Rio Tinto’s West Angelas Deposits C and D iron ore project in Western Australia with its scope of the work to be completed by mid-year.

Monadelphous managing director Rob Velletri said the company had delivered a positive result amid the COVID-19 pandemic and was strongly positioned to face further opportunities and challenges.

The company highlighted China’s demand for iron ore has bolstered prices of the commodity, which should see domestic activity continue.

“Maintenance activity in the resources and energy sectors has recovered from the effects of COVID-19. Demand for maintenance services is expected to grow steadily on the back of ageing assets and customers deferring non-essential work in prior periods,” the company stated.