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Monadelphous plays the field, scores long-term relationships

MONADELPHOUS has secured $A140 million in maintenance contracts and extensions with BHP Billiton,...

Andrew Duffy

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The contracts include a three-year maintenance agreement with BHP for mechanical and electrical services across Nickel West’s operations in Western Australia.

It has also secured a two-year extension for an onsite services contract at BHP Billiton’s Olympic Dam operation, at which site Monadelphous has been working for more than 20 years.

Also locked in is a one-year contract with Rio Tinto Coal and Allied for dragline and shovel shutdowns at the Mount Thorley Warkworth and Hunter Valley Operations sites in New South Wales.

The agreement includes extension options of up to four years.

A one-year extension to a services contract with BP at Kwinana in Perth has also been signed.

“These contracts and contract extensions will support our recurring revenue base and reflect the importance we place on developing and maintaining long-term relationships with customers in our core markets,” Monadelphous managing director Rob Velletri said.

In February Monadelphous notched a record net profit of $87.1 million for the first half of the financial year.

Monadelphous shares were last trading 0.1% lower at $17.95.

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