Monadelphous profit slides on depreciation, wins Albemarle contract2019|01:30
Engineering company Monadelphous Group (ASX:MND) has seen its attributable profit slide to $50.6 million, down from FY18’s $71.4 million. Its bottom line was hit by a rise in its depreciation expense, as part its plant and equipment renewal process. On top of that it was also hit by a drop-in interest earned. MND which works with major companies like BHP (ASX:BHP), Woodside (ASX:WPL) and Oil Search (ASX:OSH)) says it’s also seen a drop in resources construction activity levels. Its earnings (earnings before interest, tax, depreciation and amortisation (EBITDA)) fell 10.3 per cent on the prior year, falling to $106.8 million. Revenue was in line with guidance but fell about 9.9 per cent $1.6 billion. MND declared a final dividend of 23 cents per share, taking the full-year dividend to 48 cents per share (fully franked). That’s a payout ratio of 90 per cent of profit. The company announced today it won a major construction contract at Albemarle Lithium new Kemerton lithium hydroxide plant in the south-west region of WA. Since July, the company has now locked in contracts over $400 million for FY2020. Monadelphous Group (ASX:MND) shares are up 15.5 per cent year-on-year. At the moment, Mpnadelphous Group (ASX:MND) shares are trading 1.6 per cent lower at $17.67.