Mondium Pty Ltd is an engineering, procurement and construction (EPC) company in which Monadelphous Group Limited (ASX: MND) is a 60% shareholder. Recently, Monadelphous Group noted Mondium’s announcement in which Mondium announced that it has been awarded its largest contract to date, valued at around $100 million, with Talison Lithium.
As per the company’s announcement, the contract is regarding the design and construction of a new tailing retreatment processing plant at the Greenbushes mine site in the south west of Western Australia, highlighting Mondium’s strengthening position in the minerals processing EPC market.
It is expected that the work under the contract will be completed by June 2020.
As a leading Australian engineering group, Monadelphous Group has also secured various significant contract in the recent past. Monadelphous Group was recently awarded a second construction contract at BHP’s South Flank Project in the Pilbara region. During the first half of FY19, the company secured around $770 million of new contracts.
A significant increase in demand for maintenance and sustaining capital works services across the resources and energy sectors has positioned the company as a leading maintenance services provider. The company is having two operating divisions - Engineering Construction Division and Maintenance and Industrial Services Division. These divisions are working predominately in Australia, with overseas operations in New Zealand, China, Papua New Guinea, Mongolia and the United States.
The company’s Engineering Construction division provides large-scale multidisciplinary project management and construction services while its Maintenance and Industrial Services division specialises in the planning, management and execution of mechanical and electrical maintenance services, shutdowns, fixed plant maintenance services, access solutions, specialist coatings and sustaining capital works. The Maintenance and Industrial Services division has been strengthening its position as a leading maintenance services provider, successfully embedding new services into core operations and expanding geographically.
In the first half of FY19, Monadelphous Group reported significant increase in maintenance revenues which increased by 25% in H1FY19 as compared to the previous corresponding period (pcp). During the half year period, the company’s Maintenance and Industrial Services division performed strongly and achieved a 25% increase in revenue compared to the first half of the previous financial year, representing a record six-month performance for the division.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock traded at a price of $18.200, down by 3.499% during the day’s trade with a market capitalisation of ~$1.78 billion as on 6 May 2019. The counter opened the day at $18.800 and touched a day’s low of $18.200 with a daily volume of ~269,548. The stock has provided a year till date return of 38.68% & also posted returns of 29.92%, -3.10% & 22.37% over the past six months, three & one-month period respectively. It had a 52-week high price of $19.480 and touched 52 weeks low of $12.510, with an average volume of ~415,100.
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