Major contracts mark a successful year for Monadelphous

Monadelphous Group (ASX: MND) reports a revenue of $2.03b for FY24, citing continued strong demand for maintenance services and higher levels of activity in the engineering construction sector.

This follows Monadelphous’ announcement of $340m in new construction contracts for the iron ore and renewable energy sectors.

In total, more than $3b in new contracts and extensions in lithium, iron ore and renewable energy sectors have been secured by Monadelphous in FY24.

Within the lithium sector, Monadelphous secured contracts at Talison Lithium’s Greenbushes project, Liontown Resources’ (ASX: LTR) Kathleen Valley lithium project and Albemarle’s Kemerton expansion project all in WA.

Monadelphous also experienced strong demand in the WA iron ore sector, securing new contracts and extensions with long-term customers Rio Tinto (ASX: RIO), BHP (ASX: BHP) and Fortescue (ASX: FMG).

Post year end, Mondium, Monadelphous’ engineering, procurement and construction joint venture with Lycopodium, was awarded a major design and construction contract by Rio Tinto for a new sampling facility at a port operation located in the Pilbara region of WA.

Monadelphous managing director Zoran Bebic says despite some recent commodity price volatility, key indicators of long-term resources and energy demand remain robust.

“Prospects remain positive in resources and energy, with Australian iron ore miners anticipated to continue investing, several new gas construction projects progressing, decarbonisation projects making up an increasing share of capital expenditure forecasts and the pipeline of renewal energy opportunities expanding,” he said.

Monadelphous’ Maintenance and Industrial Services division delivered another record annual revenue result of $1.32b, with high demand experienced across all sectors.

The Engineering Construction division reported revenue of $712.7m, up 31.5% from FY23.