The West

Monadelphous lifts profit by 38pc

Engineering firm Monadelphous has continued to benefit from massive investments in resource projects, posting a record $79.1 million result in the first half of the 2012/13 financial year.

The company's net profit in the six months to December 31 was up 38 per cent from $57.5 million in the previous corresponding period.

"The company's performance in the first half of 2013 reflects the record level of resources and energy developments underway, the unprecedented volume of new contracts secured in the previous financial year and the current intensity of engineering construction activity," managing director Rob Velletri said in a statement.

He forecast a 35 per cent rise in revenue over the full financial year, after revenue rose by 47 per cent in the first half to $879.5 million.

"The pipeline of engineering construction opportunities flowing from the large volume of approved projects, particularly in the iron ore and LNG (liquefied natural gas) sectors, will continue to drive solid demand for the company's services," Monadelphous said.

But it expects revenue growth to slow in the 2013/14 financial year which, the company said, would be a year of consolidation.

Monadelphous declared a fully-franked interim dividend of 62 cents per share, up from 50 cents at the same time in the previous year.

Shares in the company were off $2.07, or 7.43 per cent, to $25.78 at 7.15am on profit taking.

The West Australian

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