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Monadelphous Group Limited (ASX:MND) has announced its HY 2019 financial results with a revenue of $830.5 million for the half year ended 31st December 2018, which was in line with the guidance provided in the Annual General Meeting of the company held in November 2018. However, the revenue was down by 5% with respect to the previous corresponding period. The result reflects a significant increase in maintenance revenue and industrial services revenue. As per the Managing Director, Rob Velletri, the Company's maintenance and industrial services division achieved record performance for the six months period.
The Company's maintenance and industrial division achieved a 25% increase in revenue as compared to the first half of the previous financial year and recorded a six-month achievement. As per the company, the record performance by the respective division was mainly due to the increased activity levels in offshore oil and gas contracts, and growing demand for the services in the resources sector. Â
On the earnings front, EBITDA was down 10.2% from the previous corresponding quarter and was noted at $55.8 million. Net profit after tax (NPAT) was down 18.3% and marked a reduction in the prior corresponding period. An increase in the depreciation charge resulting from the company's recent plant and equipment fleet renewal process and a reduction in net interest earned contributed to NPAT. The earning per share was noted at 32.7 cents.
The Board of Directors of the company declared a fully franked interim dividend of 25 cents per share and said that the MNDâs Dividend reinvestment plan would be applicable to the interim dividend.
At the end of the half year, the company has a cash balance of $193.5 million, with operational cash flow of $15.5 million for the period.
Operational Activity:
The Engineering Construction Division reported revenue of $331.6 million from contracts with customers. The company successfully completed its biggest ever project, the Ichthys Project onshore LNG facilities during the period.
Under its BHP panel contract in the Pilbara, West-Australia, the company undertook several projects. Subsequent to the half year end, the company was awarded a major construction contract at BHP's South Flank Project valued at $108 million. The project, anticipated to be wrapped up next two years, include structural, mechanical, piping, electrical and instrumentation work.
The company has been making progress on its contracted work at the Oyu Tolgoi Underground Project in Mongolia, and the work significantly ramped up during the period with approximately 1,500 people, working on the project at the end of the half year.
Zenviron, the company's renewable energy Joint Venture secured another two wind farm contracts during the period, and now MDN has a total of five such contracts awarded since April 2018.
During the time of writing this report, the share price of Monadelphous group limited closed (as on 19th February 2019) at AU$ 17.380, which is 4.197% up from its previous close. During the trading session, the share price for the day made a high of AU$ 17.580 and a low of AU$16.320.
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