Monadelphous revenue hit as mining investment peaks

Monadelphous said slow activity in the mining sector had led to a 10.9 per cent fall in sales revenue for 2013/14.

Speaking to shareholders at the company’s annual meeting, chairman John Rubino said the wave of new investment in mining had waivered.

“We have seen significant change in the industry,” Rubino said.

“The focus of customers has shifted to low capital intensity and production efficiency.”

Sales revenue for the year was $2.3 billion, down 10.9 per cent while the company’s annual profit fell 6.3 per cent to $146.5 million.

Despite the short term pressure, Rubino said the company was in a strong position.

It won $1.8 billion of new contracts and contract extensions, more than 70 per cent of them with oil and gas customers.

“Our broad exposure to oil and gas will provide ongoing construction and maintenance opportunities,” managing director Rob Valletri said.

“Future prospects include maintenance services for new LNG operations including floating LNG, and further construction and maintenance work in the coal seam gas market in Queensland.”

The company finished the year with a net cash position of $180.8 million at year end.

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