Engineering company Monadelphous Group Ltd (ASX:MND) has seen its share price rise more than 10 percent as it reported a rise in both profit and revenue for the 2024 fiscal year, with its two main divisions – Maintenance and Industrial Services and Engineering Construction – both reporting strong gains.
Monadelphous told investors its net profit after tax had risen 16.2% in FY2024 to $62.2 million, while revenue was up 11% compared to the previous fiscal year, finishing at $2.03 billion.
Of that, $1.32 billion in revenue came from Maintenance and Industrial Services – with this being a record for the company – while Engineering Construction revenue was $712.7 million: a rise of 31.5%.
Monadelphous also reported a full year dividend of 58 cash per share (cps), with a dividend payout ratio of 91%.
The strong data represented a turnaround in narrative for the company, after it lost several construction contracts with Albemarle earlier this month, as the latter company downgraded its lithium operations.
Monadelphous Managing Director Zoran Bebic said the company was buoyed by indicators that the resources and energy industries in Australian remain strong, despite come volatility in commodity markets.
“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.
At 12:08 AEST, Monadelphous shares were trading at $13.04, a rise of 10.32% since the market opened.