Monadelphous has defined its 2021 financial year by capital investments and strategic forward planning, with $950 million of new contracts and contract extensions secured across its resources, energy and infrastructure sectors.
As the demand for iron ore boomed, Monedelphous won a significant number of sustaining capital work projects with both BHP and Rio Tinto, alongside a five-year crane services contract with Fortescue Metals Group, valued at approximately $150 million.
Work was secured under the BHP Western Australia Iron Ore (WAIO) panel agreement across various sites in the Pilbara.
Monedelphous provided multidisciplinary brownfield modification works at Nelson Point and Finucane Island, dewatering of surplus water and fabrication of the train loadout rectification works at Jimblebar mine site, and structural, mechanical and electrical upgrades at the Newman Hub.
This was the trend of Monedelphous’ triumphs – increased demand as industries recover from the initial COVID-19 delays of last year.
Monadelphous managing director Rob Velletri said big contract wins during difficult times position the engineering company strongly going forward.
However, he didn’t deny the impact of COVID-19, and what the pandemic means for Monadelphous’ preparations and frameworks going forward.
“While market conditions are expected to be strong, COVID-19 impacts and the skills labour shortage will continue to be a major challenge for the industry,” he said.
“Our attraction and retention initiatives, strategic approach to targeting new work and collaborative working relationships with our customers will become more important than ever.”
Looking ahead, Monadelphous believes the outlook for Australia’s iron ore industry will sustain, something which the company can rely upon in the short-to-medium-term.
Yet, Monadelphous has forecast maintenance activity as ageing assets require a reset and customers defer discretionary work in prior periods.
Monadelphous recorded a net profit of $47.1 million in the 2021 financial year.